TORONTO, October 28, 2016 - First Asset Investment Management Inc. (the "Manager"), the manager of Utility Split Trust (the "Fund") (TSX: UST.UN and UST.PR.B), announces that, as contemplated by the Fund's declaration of trust, the Fund is scheduled to terminate on January 3, 2017 (the "Termination Date").
Unitholders will not be required to take any action in connection with the termination of the Fund.
In connection with the termination:
- the Class B Preferred Securities of the Fund (TSX: UST.B.PR) outstanding on the Termination Date will mature on such date, and the Fund will repay the original subscription price of $10 for each Class B Preferred Security together with any accrued and unpaid interest thereon payable on the Termination Date;
- any Capital Units of the Fund (TSX: UST.UN) outstanding on the Termination Date will be redeemed by the Fund for an amount, if any, equal to a pro rata share of the net assets of the Fund remaining after payment or accrual of all debts, expenses and liabilities (including any senior indebtedness and the aggregate repayment price paid in respect of the Class B Preferred Securities) and liquidation expenses of the Fund;
- the last regular monthly distribution in respect of the Capital Units, if any, will be in respect of the month ending November 30, 2016. The Fund will not pay a regular monthly distribution in December 2016, but may pay a special distribution if required for tax purposes;
- the Manager will request the Toronto Stock Exchange (the “TSX”) to de-list the Class B Preferred Securities and the Capital Units from the TSX as at the close of business on December 30, 2016; and
- payment of the termination proceeds will be made on or about January 6, 2017 to the beneficial holders of such units through CDS Clearing and Depository Services Inc.
If the Manager determines or is advised by the investment sub-advisor that it will not be possible to convert all of the Fund's property into cash before the Fund's scheduled termination, the Manager may, upon 30 days' prior notice to Unitholders, extend the date for termination of the Fund to April 1, 2017.
If the Manager determines that it would be unable to convert all of the Fund’s property to cash on or before the Termination Date and the Manager determines that it would be in the best interests of Unitholders, the Fund's trustee shall, on the direction of the Manager and upon at least 10 days prior notice to Unitholders, extend the Termination Date to no later than June 30, 2017. Any such extension will not, however, shall not delay the repayment of the Preferred Securities.
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For further information, please call Investor Relations, First Asset at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com.
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