Dividend 15 Split Corp T.DFN

Termination date / prospectus verbiage

[punjabi416]

Hi,

Can someone please help me understand the verbiage surrounding the termination date from the prospectus document?

I am a Class A shareholder and my understanding of the wording of Class A Shares (b) "on or about the termination date, to pay the holders of class A shares at least the original issue price of those shares" is that when the fund closes I would receive at least $15 despite the market value (which is currently ~$4).

I am positive I might be missing something here as why would investors not flock to DFN at current levels if they're guaranteed $15 in the event of a *potential* termination.

Appreciate the help!

[navgod]

Your quote is discribing DFN's "objectives" for the termination date. You are quaranteed nothing please read page 13 of the Annual Information Form.

[flamingogold]

Here's a basic version. DFN is currently trading below NAV so in the unlikely event of termination, the preferreds get the issue price ($10) and the commons get whatever is left over which, at the moment, covers all shareholders buying today. However, the NAV is constantly changing so anytme in the future the situation could change where the NAV drops so that in the unlikely event of fund

[punjabi416]

Thank you to both yourself and navgod!

[Max750X]

Great explantions!  Thank you.

[Clarke123]

Good explanation. As an example, if it was to terminate today, preferred will get 10 dollars, and commons will get 4.65 or so.