TORONTO, June 4, 2013 Ė Utility Split Trust (the "Fund") (TSX: UST.UN; UST.PR.B) announces the following details in respect of the Fundís 2013 annual redemption (the "Annual Redemption").
For those Unitholders who submitted matching units to the Concurrent Annual Redemption, the redemption price per combined security (a "combined security" consisting of one Capital Unit and one Preferred Security) is $26.2239, and will be paid to redeeming unitholders on June 20, 2013.
For those Unitholders who submitted Capital Units to the Annual Redemption (without matching Preferred Securities), the final Redemption Price is yet to be determined. 75,410 Capital Units were tendered pursuant to the Annual Redemption. In order to maintain the same number of Capital Units and Preferred Securities outstanding, the Fund is required to purchase 75,410 matching Preferred Securities on the Toronto Stock Exchange (the "TSX"). The cost to the Fund to purchase the Preferred Securities (in addition to related transaction costs) is deducted from the redemption price per combined security to be paid for redeemed Capital Units. For example, if the redemption price per combined security is $26.22, there are approximately $0.02 of costs and it costs the Fund $12.00 on average to buy matching Preferred Securities, each tendered Capital Unit will be redeemed for $14.20 (i.e., $26.22 less $0.02 less $12.00). In other words, the higher the price of the Preferred Securities on the market, the less the net redemption proceeds paid on redeemed Capital Units.
To date, the Fund has been able to acquire 19,600 Preferred Securities on the TSX at an average cost of $11.8701 per Preferred Security, and is required to purchase another 55,810 Preferred Securities to complete the Annual Redemption. Given the current availability and trading price of the Preferred Securities on the TSX, the Manager anticipates that the cost of acquiring the remaining matching Preferred Securities may result in the redemption proceeds available to be paid on redeemed Capital Units being significantly less than the price at which unitholders may sell those units on the TSX. Accordingly, the Fund wishes to provide unitholders who have submitted redemption requests in respect of Capital Units with the opportunity to retract such requests if they so choose. Unitholders wishing to retract their redemption requests should contact their Investment Dealer as soon as possible. The Fundís deadline for retraction of redemption requests expires on Friday, June 7, 2013 at 5 p.m., however, Investment Dealers may have earlier internal deadlines.
All Capital Units tendered to the Annual Redemption and not retracted will be redeemed by the Fund subject to the Fundís right to redeem only those Capital Units for which the Fund is able to purchase matching Preferred Securities. If the Fund is unable to purchase matching Preferred Securities, the Annual Redemption of the Capital Units will be done on a pro-rated basis and therefore a portion of tendered Capital Units will not be redeemed.
For further information, please contact Rob MacNiven, Investor Relations at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com.