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Premium Income Corp T.PIC.A

Alternate Symbol(s):  T.PIC.PR.A

Premium Income Corporation is a split share company. The Fund’s investment objectives are to provide Preferred shareholders with cumulative preferential quarterly cash distributions of $0.215625 per share, representing an annual yield of 5.75% on the original issue price of the Preferred shares; to provide Class A shareholders with quarterly cash distributions of $0.20319 per share, and to return the original issue price to holders of both preferred share and Class A shares upon windup of the Fund. It invests at least 75 % of its net asset value (NAV) in common shares of the Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank (collectively, the Banks) and also invests up to 25 % of its NAV in common shares of National Bank of Canada. In addition, the Fund may purchase public investment funds, including exchange-traded funds and other Mulvihill Funds. Its investment manager is Mulvihill Capital Management Inc.


TSX:PIC.A - Post by User

Comment by marcroberton Nov 04, 2024 12:37pm
94 Views
Post# 36295521

RE:Reply from Mulvihill

RE:Reply from Mulvihillto recap , on nov 12, the number of A shares will be sliced by a third, the nav will be 6.34, and the yield goes from the current roughly 20% (81 cents /4.20 ) to 15%, unless of course A shares trade way under nav: At 4.80 after consolidation, yield would still be 20%, but that would be 24% discount to NAV vs about 0% today.

Also i was on the site and as of end of July, cash was 60.4%.

Why would anyone hold through nov 12 unless you believe it will trade at or above NAV and you don't mind getting a 25% yield haircut vs today.



 
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