Toronto-based Manulife Investments has filed a preliminary prospectus for an initial public offering of units of Manulife Floating Rate Senior Loan Fund.
Units will be offered at of $10 per Class A unit and US$10 per Class U unit. Class U units are designed for investors who want to make their investment in U.S. dollars.
The closed-end fund has been created to invest in an actively managed portfolio of investments in senior floating rate loans and, to a lesser extent, short duration debt securities. Manulife Asset Management Ltd. will act as manager and investment manager of the fund. The portfolio will be actively managed by Manulife Asset Management (US) LLC, the advisor.
The fund’s initial distribution target is expected to be $0.05625 per Class A unit per month or $0.675 per annum (US$0.05625 per Class U unit per month or US$0.675 per year), representing an initial yield on the unit issue price of 6.75% per year.
The offering is being conducted by a syndicate of Agents led by RBC Capital Markets, CIBC and Scotiabank and includes BMO Capital Markets, Manulife Securities Inc., National Bank Financial Inc., TD Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., Macquarie Private Wealth Inc., Raymond James Ltd., Desjardins Securities Inc. and Mackie Research Capital Corp.