BMT.PR.A to be Redeemed on Schedule

BMONT Split Corp. has announced:

The Capital Shares and Preferred Shares will be redeemed by the Company on August 5, 2009 (the “Redemption Date”) in accordance with the redemption provisions as detailed in the prospectus dated July 29, 2004. Pursuant to these provisions, the Preferred Shares will be redeemed at a price per share equal to the lesser of $27.45 and the net asset value per unit. The Capital Shares will be redeemed at a price for every two shares equal to the amount by which the net asset value per unit exceeds $27.45.

A further press release will be issued by the Company in connection with the redemption prices on July 31, 2009. Payment of the amounts due to holders of Capital Shares and Preferred Shares will be made by the Company on August 5, 2009.

Given that the NAV is currently $47.30, redemption at par seems like a pretty good bet.

BMT.PR.A was last mentioned on PrefBlog in February, when it was downgraded to Pfd-4 by DBRS. At the time, the NAV was $30.77 … what a difference!

BMT.PR.A is tracked by HIMIPref™, but is relegated to the “Scraps” sub-index on both volume and credit concerns.

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