Life & Banc Split Corp T.LBS

LBS unit nav to Oct 16 = approx: $16.31

[mouserman]

So big bounce back for LBS today, all 10 stocks up... so erased the losses from friday and so  actually added another 4 cents on UNIT NAV since thursday. Last trade @ 7.64 equates to a premium of about 1.33 before distributions, or about 21% .
LBS was halted today as they announced an offering of preferreds. This will actually raise the NAV of the commons, as more cash will be in the holdings  until they can put it to work buying the best names in the fund.

[navgod]

The offering of prefs is to replace the prefs retracted in the option that came with the fund extension on Oct 31. Therefor the net impact on NAV will be negative ie the difference between the $10.00 paid out to those that redeemed and the proceeds from the offering $9.60-issue expenses. As we don't know the size of the issue the issue the exact impact is still not known but it will be

[alder]

Hi MM : Thank you for this. It is a concern. The same thing will happen with BK.PR..A and BK.PR.A I think. Can you estimate at what price shares will need to be issued to compensate for those redeemed. I know the amounts are unknown. Many thanks Alder

[alder]

Apologies Navgod. I see LBS.PR.A has a significant decrease today. Regards Alder

[mouserman]

AH yes, i was under the impression that there was already an imbalance, and Brompton ( unlike Quadravest) seems to take care of those inequalities promptly. But i see now the imbalance was under 1 million shares...