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(Full text of press release from Canada NewsWire)
GENTRA TO REPAY JUNIOR SUBORDINATED DEBENTURES, REINSTATE
PREFERRED SHARE DIVIDENDS AND CONVERT NON-CUMULATIVE PREFERRED
SHARES
STOCK SYMBOL: GTA
TORONTO, Aug. 15 /CNW/ - GENTRA today announced three
initiatives to simplify its capital structure, increase its
common share equity base and bring accumulated arrear
dividends up to date.
At Gentra's annual meeting of shareholders held on April
25, 1997, management committed to address the issue of
outstanding preferred share arrear dividends prior to year
end. A review of arrear dividends was considered appropriate
given the strength of Gentra's balance sheet and the Company's
profitability, liquidity and new investment activities. Having
completed this review, Gentra today announced that the Board
has approved three specific initiatives.
Repayment of Junior Subordinated Debentures
A covenant relating to the Company's Junior Subordinated
Debentures restricts the payment of dividends. In order to
reinstate preferred share dividends, all outstanding Junior
Subordinated Debentures will be redeemed on September 30, 1997
with accrued interest for total consideration of $145 million.
Reinstatement of Preferred Share Dividends
Gentra will pay all dividends accrued and unpaid on
October 1, 1997 to cumulative preferred shareholders of record
on September 15, 1997 with the exception of Series N for which
the record date is September 23, 1997. The amount of arrear
dividends on the cumulative preferred shares at that time will
be approximately $87 million or $5.24 per share on the Series
J and Series M shares, $5.33 on the Series G shares and $7.13
on the Series N shares.
It is also the intention of the Board of Directors of
Gentra to reinstate the payment of quarterly cumulative
preferred share dividends.
Conversion Non-cumulative Preferred Shares
Gentra today also announced that it will be redeeming its
Series Q and Series R non-cumulative preferred shares in
accordance with the terms and conditions of those shares. The
articles governing the Series Q and Series R preferred shares
permit Gentra to call for the redemption of these shares in
exchange for common shares at 95% of the average trading price
of such shares for the 20 day period ending four days before
the redemption date which the Board of Directors fixed as
October 15, 1997.
James Walker, President and Chief Executive Officer of
Gentra today stated that, We have examined many alternatives
to address our arrear dividends and concluded that the fair
result to Gentra cumulative preferred shareholders is to pay
dividends in full at this time. Upon completion of these
initiatives, the Company can now positively move forward as it
continues to pursue its real estate investment activities in
Canada.''
Gentra is a real estate investment company which focuses
on acquiring real estate properties in Canada and enhancing
their value by repositioning them in the marketplace prior to
sale. Gentra is also active in providing financing secured by
real estate properties. Gentra is a TSE 300 company having a
market capitalization of approximately $1.1 billion.
/For further information: Janice S. Topp, Gentra Inc.,
(416) 359-8566/
Copyright 1997, Reuters News Service |
