Canaccord Capital Inc. (TSX:CCI) has secured the necessary funding to continue with its plan to buy back its asset-backed commercial paper (ABCP) from the company's small investors.
Letters of credit issued by chartered banks for $138.3 million have been filed with the Royal Bank of Canada.
Under its Canaccord Relief Program buy-back plan, the company would buy notes at full value from investors holding less than $1 million in ABCP investments. That would clear the way for the long-term restructuring of $33 billion in ABCP notes held by larger investors across Canada.
The relief program is dependent on the restructuring's approval. The vote on the restructuring is scheduled for April 25. Implementation would start in May.
Canaccord's share price range during the past week: between $10.26 and $10.80; 52-week high: $25.92; 52-week low: $8.60.