Charterhouse Financial Group has filed a preliminary prospectus for an initial public offering of ROC preferred shares and capital yield shares of Charterhouse Advantaged Trust Split Corp.
Charterhouse Advantaged has been created in order to provide the holders of ROC preferred shares with fixed cumulative preferential tax efficient distributions and capital yield shares with leveraged tax efficient distributions from a 5-year exposure to a low cost, broadly diversified and approximately equally weighted indexed portfolio of mid- to large-capitalization income trusts. Each qualifying income trust will have a minimum market capitalization of $400 million, will be listed on the Toronto Stock Exchange and have an established record of increasing its regular distribution.
The ROC preferred shares have been provisionally rated Pfd-2 (low) by Dominion Bond Rating Service Ltd. The capital yield shares will have leveraged exposure to any changes in the value of and distributions from the trust portfolio.
Charterhouse AT Split Management Corp. will act as the manager of Charterhouse Advantaged. The manager is also a member of the Charterhouse Financial Group, which originates and manages exchange-traded investment funds and other structured investment products in Canada, including Charterhouse Preferred Share Index Corp.
The syndicate of agents is being co-led by Scotia Capital Inc. and CIBC World Markets Inc. and includes BMO Nesbitt Burns Inc., TD Securities Inc., National Bank Financial Inc., HSBC Securities (Canada) Inc., Desjardins Securities Inc., MGI Securities Inc., Raymond James Ltd., Wellington West Capital Inc., Blackmont Capital Inc., Canaccord Capital Corp., Dundee Securities Corp. and Richardson Partners Financial Ltd.
Charterhouse Financial is an affiliate of Jovian Capital Corp.