Partners Value Split Corp. Launches Normal Course Issuer Bid
TORONTO – Partners Value Split Corp. (the “Company”, TSX: PVS.PR.H, PVS.PR.J, PVS.PR.K, PVS.PR.L, PVS.PR.M, PVS.PR.U, PVS.PR.V) announced an exciting development with the approval from the Toronto Stock Exchange to initiate a normal course issuer bid. This initiative allows the Company to procure up to 10% of the public float of its outstanding Class AA Preferred Shares listed on the TSX.
Details of the Share Buyback
The parameters set for this issuer bid enable the Company to acquire up to 837,980 Preferred Shares within any given 30-day period, which corresponds to approximately 2% of the total 41,899,000 issued and outstanding Preferred Shares as of mid-November. The open market will serve as the platform for these acquisitions, facilitated through notable channels such as the TSX and additional Canadian trading systems.
Repurchase Pricing and Broker Information
RBC Capital Markets will act as the Company’s brokerage in executing these purchases. The pricing for the shares acquired will reflect their market value at the time of acquisition, ensuring that transactions are conducted at fair market rates.
Authorized Shares for Repurchase
Under the approved plan, Partners Value Split Corp. is entitled to repurchase specific series of its Preferred Shares. An overview of the shares and the maximum quantity allowed for repurchase includes:
Class AA, Series 10 (PVS.PR.H)
Issued and outstanding: 6,000,000 shares, Public float: 6,000,000 shares, Maximum purchase limit: 600,000 shares.
Class AA, Series 12 (PVS.PR.J)
Issued and outstanding: 6,899,000 shares, Public float: 6,899,000 shares, Maximum purchase limit: 689,900 shares.
Class AA, Series 13 (PVS.PR.K)
Issued and outstanding: 6,000,000 shares, Public float: 6,000,000 shares, Maximum purchase limit: 600,000 shares.
Class AA, Series 14 (PVS.PR.L)
Issued and outstanding: 6,000,000 shares, Public float: 6,000,000 shares, Maximum purchase limit: 600,000 shares.
Class AA, Series 15 (PVS.PR.M)
Issued and outstanding: 8,000,000 shares, Public float: 8,000,000 shares, Maximum purchase limit: 800,000 shares.
Class AA, Series 16 (PVS.PR.U)
Issued and outstanding: 4,000,000 shares, Public float: 4,000,000 shares, Maximum purchase limit: 400,000 shares.
Class AA, Series 17 (PVS.PR.V)
Issued and outstanding: 5,000,000 shares, Public float: 5,000,000 shares, Maximum purchase limit: 500,000 shares.
Future Implications of the Bid
This marks the first instance of Partners Value Split Corp. engaging in a normal course issuer bid for its Preferred Shares. The decision stems from the belief that the prevailing market price doesn't adequately reflect their intrinsic value. By repurchasing its shares, the Company aims to leverage its available funds effectively and enhance shareholder value.
Automatic Purchase Plan for Efficiency
To manage the buyback efficiently, the Company plans to establish an automatic purchase plan with RBC Capital Markets. This plan will facilitate purchases during designated blackout periods when the Company cannot typically execute trades due to internal regulations or compliance requirements. Outside these windows, management will have the discretion to repurchase shares while adhering to all relevant legal requirements.
Contact Information for Investor Relations
For those seeking more information on this new initiative, Investor Relations can be reached at 416-643-7621 or through the Company email.
Frequently Asked Questions
What is the purpose of the normal course issuer bid?
The issuer bid allows the Company to repurchase its own Preferred Shares when they are undervalued, thus potentially increasing shareholder value.
How many shares can Partners Value Split Corp. repurchase?
The Company can repurchase up to 837,980 shares within any 30-day period, which is 2% of the total issued shares.
Who is facilitating the buyback process?
The buyback will be facilitated by RBC Capital Markets, ensuring smooth transactions in compliance with market regulations.
What will happen to the shares repurchased under the bid?
All Preferred Shares acquired under the Bid will be cancelled, reducing the total number of shares in circulation.
When does the normal course issuer bid take effect?
The bid is set to commence from the end of this month and will continue until the following year or until the purchases are completed.
