Global Diversified Investment Grade Income Trust - Termination of the
Financial Contracts and Upcoming Special Measures for the 2013 Annual
MONTRÉAL, July 23, 2013 /CNW Telbec/ - Global Diversified Investment Grade
Income Trust ("Global DIGIT" or the "Trust") announces today that Deutsche
Bank A.G. Canada Branch ("Deutsche Bank") confirmed its intention to terminate
the Financial Contracts in September2014 and that it is in discussion with
Deutsche Bank and National Bank of Canada to provide for enhanced tendering
procedures for this year's annual redemption privilege of Global DIGIT Units
to help Unitholders in deciding whether or not to participate in the annual
Termination of the Financial Contracts
In order to provide exposure to globally diversified portfolios, the Trust
entered in 2004 into three credit default swaps with Deutsche Bank (the
"Financial Contracts") and granted security to secure its obligations under
such Financial Contracts.
The Financial Contracts had a scheduled termination date of September9, 2016
but Deutsche Bank had an option to terminate such contracts on September9,
2014 and then on a quarterly basis for a period up to September9, 2016.
Deutsche Bank has confirmed that it will terminate such Financial Contracts on
September 9, 2014. In the absence of any default in the underlying portfolios
of reference obligations resulting in losses for the Trust, the full amount of
the collateral will be released to the Trust as well as the credit default
2013 Enhanced Annual Tendering Procedure.
For the 2013's annual redemption privilege, the Trust is in discussion with
each of Deutsche Bank and National Bank Canada to provide for indicative bids
and final bids in support of the annual redemption privilege and enhanced
tendering procedures. Once these discussions are finalized, the Trust will
issue a press release pertaining to the tendering procedures for the 2013
Annual Redemption Privilege.
About Global DIGIT
Global DIGIT provides an economic interest in a mezzanine tranche of credit
default swap agreements in respect of portfolios of synthetic corporate
exposures, mortgage-backed securities, asset-backed securities and structured
Louis Arteau : 514.394.7563 http://info.fbn.ca/trusts
SOURCE: Global Diversified Investment Grade Income Trust
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-0- Jul/23/2013 13:30 GMT
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