TORONTO, ONTARIO — (Marketwired) — 07/24/13 — West Street Capital Corporation (“West Street” or the “company”) (TSX VENTURE: WSC) (TSX VENTURE: WSC.PR.A) announced today that the company has resumed the payment of quarterly dividends on the Class A Preferred Shares, Series 1 and Series 2 (the “Preferred Shares”). The West Street board of directors has approved a quarterly cash dividend of $0.4375 per Preferred Share, Series 1 and $0.2925 per Preferred Share, Series 2, payable on September 30, 2013 to shareholders of record on August 30, 2013. The aggregate amount of the quarterly dividend payment on the Preferred Shares is $734,348.
The dividends, which are cumulative and rank in priority to the interests of the common shares, were initially suspended in 1991 due to liquidity concerns and a capital deficiency at the company. The value of the company-s assets now exceed the liabilities and stated capital of the company by $44 million as at March 31, 2013 (the last published financial statements) and the company holds considerable liquid assets, including a cash balance of $38 million as at June 30, 2013.
In July, 2013, the company received a formal request by the company-s major shareholder, Brookfield Asset Management Inc., which owns all of the company-s Preferred Shares and 60% of the company-s common shares, to resume quarterly dividends and to also consider payments of existing accumulated unpaid dividends. The decision to resume the quarterly dividend payments was approved by the independent directors of the board. The request to consider payments in respect of dividends in arrears is currently under review by the independent directors and a decision is expected to be made by the independent directors in response to this request before the end of the third quarter of 2013.
Forward-Looking Statements
Note: This news release contains forward-looking information within the meaning of Canadian provincial securities laws and forward-looking statements within the meaning of applicable Canadian securities regulations. The word ” “expect” and derivations thereof and other expressions that are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify forward-looking statements. Forward-looking statements in this news release include statements in regards to the review by the independent directors on the payment of dividends in arrears on the company-s Preferred Shares. Although West Street believes that such forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.
When relying on our forward-looking statements to make decisions with respect to West Street, investors and others should carefully consider future uncertainties and potential events. Except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, as a result of new information, future events or otherwise.
Contacts:
West Street Capital Corporation
Mabel W.H. Wong
Vice President, Finance
(416) 363-9491