Dividend 15 Split Corp II T.DF.PR.A

Termination Extension Announcement

[Morrisan]

As followers of DF, can someone help me understand yesterday's announcement, specifically:

1) a possible change in pref shares dividend.  If that were to go up, class A would be affected?

2) the special retraction right offering price based on Nov 29 NAV.  What would that look like?

[AnEducator]

Hi Morrissan, 1. The preferred share dividend is likely to rise to at least 7% given the current interest rate climate. This will have a slightly detrimental effect on the Class A Shares on a monthly basis since more of the NAV will be paid out to preferreds.  2. The NAV will depend upon the performance of the portfolio from now till November 29th. The redemption date is still very far away

[Morrisan]

Thanks, AnEducator. Can you explain the process around a retraction price, in a bit more detail?  How does it work practically? Has Quadravest ever done this with DF?  Appreciate it.

[AnEducator]

DF has a Special Retraction Privilege every five years to allow shareholders to exit their investment at NAV. This is hugely beneficial since investors are not forced to sell into the market at low prices in the event funds are required. The last retraction was in 2019, and the next one, after this year's, will be in 2029. This is how the process works: Unless the markets have a massive

[flamingogold]

We're suppose to get an announcement by Sept 30 regarding the prefs. Even though competitive funds have prefs at higher yields, does anyone think the prefs here will still get a boost now that market rates are on the decline? "Any change to the Preferred Share dividend rate for the extended term will be based on market yields for preferred shares with similar terms at such time and will

[Morrisan]

Hi All, With impending Nov 29 Termination date, does anyone anticipate what Preferred holders will do if NAV sits at $16 +/- $1.  What action Commons holders should take leading up to that date? Cheers

[mouserman]

This fund will not get terminated , but i am not sure if there is a retraction possibility. I think the commons would be more likely to get retracted at NAV if they continue to trade at a big discount at that time.