Connor, Clark & Lunn Capital Markets Inc. says Canadian Financials & Utilities Split Corp. will redeem its preferred shares and Class A shares as scheduled on January 31.
The redemption price for a preferred share will be equal to the lesser of $10.00 plus any accrued and unpaid distributions in respect of the preferred shares, and the NAV of the fund on that date divided by the number of preferred shares then outstanding.
The redemption price payable by the fund for a Class A share on that date will be equal to the greater of the NAV per unit on that date minus the sum of $10.00 plus any accrued and unpaid distributions on the preferred shares, and nil. One unit means one preferred share and one Class A share.
As at Dec. 31, 2011, the NAV per unit of the fund was estimated to be $15.33, which equates to $5.33 per Class A share and $10.00 per preferred share.
The fund’s preferred shares and Class A shares are listed on the TSX under the symbols CFS.PR.A and CFS, respectively.