MONTREAL, March 5, 2015 /CNW Telbec/ - Global Diversified Investment Grade Income Trust II ("Global DIGIT II") announces that its net asset value ("NAV") per unit as at February 28, 2015 was estimated to be $0.25. The NAV takes into account the impact of the credit event notices received by Deutsche Bank AG, Canada Branch ("DB") as disclosed by press release on November 21, 2014.
The NAV on a particular date is equal to the aggregate value of the assets less the aggregate value of the liabilities. The assets of Global DIGIT II consist mainly of cash.
In addition, DB did not exercise its option to terminate the remaining credit default swap on the reset date of March 2, 2015 and accordingly, the next applicable reset date will be March 2, 2020.
Also, the Term Deposit Note issued by National Bank of Canada and pledge to DB as collateral for the obligations of Global DIGIT II pursuant to the credit default swap came to maturity on March 2, 2015. The proceeds from the reimbursement at maturity of the note were reinvested into a new Term Deposit Note also issued by National Bank of Canada and having a maturity date of March 2, 2020. This Term Deposit Note bears interest at a rate of 1.742% per year compared to 3.094% per year since March 2, 2010 for the note that came to maturity. The reduction of the revenues for Global DIGIT II, resulting from a lower interest rate obtained upon renewal of the Term Deposit Note will be approximately $32,000 per month or $0.003 per unit.
About Global DIGIT II
Global DIGIT II provides an economic interest in an equity tranche of a credit default swap agreement in respect of portfolios of residential mortgage-backed securities, commercial asset-backed and mortgage-backed securities, consumer asset-backed securities, structured exposures to mortgage-backed and asset-backed and corporate securities.
SOURCE GLOBAL DIVERSIFIED INVESTMENT GRADE INCOME TRUST II
