Credential Securities Inc. has finalized the full funding of its relief program to repurchase at par value the restructured third-party asset-backed commercial paper (ABCP) from Credential Securities and Credential Direct clients.

Letters of credit issued by Canadian financial institutions for $38.9 million have now been lodged with the Royal Bank of Canada, which secures the payment of the purchase price for the restructured ABCP notes. The letters of credit may be drawn upon following the closing of the restructuring proposed by the Pan-Canadian Investor Committee, subject to certain conditions including the sanction and implementation of the final CCAA Plan without material amendment.

“We have worked diligently to secure the very best deal for our clients and are pleased to announce the program has been fully funded,” says Bob Hague, interim CEO of Credential Financial.

The relief program combines a third-party market bid with a top-up funded by Credential Securities and select credit union partners. The transaction was facilitated by Canaccord Capital Corp., Credential Securities says.

The relief program achieves par value plus an entitlement to any unpaid interest for clients with $1 million or less in ABCP investments. The program is dependent on a successful restructuring of the ABCP market in Canada as proposed by the Pan-Canadian Investor Committee.

Noteholders of the $32 billion worth of frozen ABCP are scheduled to vote on the restructuring deal on Friday.

More information on the Credential Securities Relief Program is available at www.credentialsecurities.com/reliefprogram.