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Global Diversified Investment Grade Income Trust - Unwind price for the 2011 Annual Redemption Option

^{Published on 2011-08-12 15:41:01 - Market Wire}
 

MONTREAL, Aug. 12, 2011 /CNW Telbec/ - Global Diversified Investment Grade Income Trust ("Global DIGIT" or the "Trust") (TSX: DG.UN) announces today that the variation of the pre-determined level of the composite benchmark used to calculate the unwind price for the 2011 Annual Redemption Option was 8.23% as of August 12, 2011. As this variation is greater than 7%, if the situation remains as such on August 29, 2011, the unwind price to be provided by Deutsche Bank A.G., Canada Branch (the "Bank") shall be made under the existing annual redemption procedures and not the special procedures adopted for the 2011 Annual Redemption Option, as more fully disclosed in Global DIGIT's press release of August 8, 2011 and Schedule A thereof to which reference is made. Since the establishment of the special procedures with the Bank, the variation was always well within the 7% boundary, up to August 10, 2011.

However, it is possible that, as a result of future fluctuations in the financial markets until August 29, 2011, the variation in the composite benchmark could be less than 7% of the pre-determined level and in such a case the unwind price to be provided by the Bank would be based on the special procedures. In light of the foregoing, the Bank has nevertheless provided the Trust with an interim quote for the Financial Contract which, taking into account the Trust's unwind costs, would result in an unwind price of about $5.40 based on the existing annual redemption procedures as opposed to the special procedures.

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 finance securities.