Global Diversified Investment Grade Income Trust II Special and Monthly Distributions and Net Asset Value as at July 15, 2012
Published on Tuesday, 17 July 2012 18:41 Written by TradersHuddle Staff
MONTREAL, July 17, 2012 /CNW Telbec/ - Global Diversified Investment Grade Income Trust II ("Global DIGIT II") declares the following special and monthly distributions consisting of partial capital reimbursements:
|Trading Symbol||Global distribution Amount (per unit)||Record Date||Payable Date||Total Distributions declared or paid in 2012 (all capital reimbursements)||TSX Closing Price per unit on July 17, 2012|
|GII.UN||$0.068||July 31, 2012||August 15, 2012||$0.194||$0.91|
The current monthly distribution is set at $0.018 per unit. In addition to this regular distribution, a special distribution of $0.05 per unit is declared by Global DIGIT II, bringing the distributions payable on August 15, 2012 to $0.068 per unit. Global DIGIT II is distributing a portion of the excess cash received as part of the redemption process of 2011 which is deemed not needed for its current operations.
Currently 15.4% of the reference obligations underlying the credit default swap C, which is the only swap remaining as described below, are rated "D" and accordingly there is a significant likelihood that further credit event notices could be received. If such notices are received, the investment income of Global DIGIT II would for the most part be eliminated bringing the monthly distribution close to nil.
In accordance with the press release issued on December 12, 2011 relating to the settlement of the credit events notified in November 2009 to Global DIGIT II and the final recovery level of zero for the related reference obligations, monthly distributions were set to equal approximately the five-year government of Canada bond yield, as at March 2010, less a spread of 0.4% to 1%, or $0.015 to $0.02 per unit. Taking into account the total loss of the credit default swaps A and B as disclosed in the same press release, only credit default swap C remains in the assets of Global DIGIT II.
Global DIGIT II also announces that the net asset value ("NAV") per unit as of July 15, 2012 was estimated to be $0.47.
The NAV on a particular date is equal to the aggregate value of the assets of Global DIGIT II, less the aggregate value of its liabilities. Substantially all of the assets of Global DIGIT II consist of cash and one credit default swap entered into with Deutsche Bank A.G. (Canada Branch) and the related collateral.
About Global DIGIT II
Global DIGIT II provides an economic interest in an equity tranche of a credit default swap agreement in respect of portfolios of residential mortgage-backed securities, commercial asset-backed and mortgage-backed securities, consumer asset-backed securities, structured exposures to mortgage-backed and asset-backed and corporate securities.
SOURCE GLOBAL DIVERSIFIED INVESTMENT GRADE INCOME TRUST II
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