Toronto-based Arrow Capital Management Inc. says Raven Rock Strategic Income Fund has completed its initial public offering of 6 million units for gross proceeds of $60 million.
The units began trading on the Toronto Stock Exchange on Monday (TSX:RFF.UN).
The closed-end fund has been created to provide enhanced exposure, on a tax advantaged basis, to an actively managed and well diversified portfolio of U.S. convertible and high yield bonds. The portfolio is designed to generate attractive risk- adjusted returns, while mitigating the impact of market and interest rate risks, by using hedging techniques.
The fund will be advised by Raven Rock Capital Management, LLC, based in Chapel Hill, N.C. The experienced investment team of portfolio managers, Nate Brown, Guy Caplan, and Bobby Richardson, have worked together since 1999, having managed institutional corporate credit portfolios of more than $3.5 billion.
The Fund has granted the agents for the offering an over-allotment option to acquire up to an additional 900,000 units at $10.00 per unit exercisable in whole or in part during the next 30 days.
The syndicate of Agents for the offering was led by CIBC and includes RBC Capital Markets, TD Securities Inc., Macquarie Private Wealth Inc., National Bank Financial Inc., BMO Capital Markets, Scotiabank, GMP Securities L.P., Raymond James Ltd., and Canaccord Genuity Corp.