Senior Secured Floating Rate Loan Fund has filed a preliminary prospectus for an initial public offering of units, Toronto-based Propel Capital Corp., the manager and promoter of the fund, said Wednesday
Class A units will be priced at $10 per unit, and Class U Units, designed for investors who want to make their investment in U.S. dollars, will be available at US$10 per unit.
The closed-end fund has been created to invest in an actively managed portfolio consisting primarily of first lien senior secured floating rate corporate loans of U.S. borrowers.
The fund’s investment objectives are to provide unitholders with stable monthly cash distributions, preservation of capital and increased returns in the event that short-term interest rates rise.
Initial distributions are targeted to be 6.5% per year based on the subscription price of $10 ($0.054167 per unit per month, or $0.65 per unit per year).
Propel has retained Credit Suisse Asset Management, LLC to provide portfolio management services to the fund. Credit Suisse has approximately U.S. $400 billion in assets under management, including over U.S. $19 billion in senior secured loans.
The syndicate of agents for this offering is being led by CIBC, National Bank Financial Inc., RBC Capital Markets, and TD Securities Inc., and includes BMO Capital Markets, GMP Securities L.P., Scotiabank, Raymond James Ltd., Canaccord Genuity Corp., Macquarie Private Wealth Inc., Desjardins Securities Inc., Dundee Securities Ltd. and Manulife Securities Inc.