Canadian Advantaged Convertibles Fund has filed a final prospectus for an initial public offering of trust units at $10 per unit, for a maximum offering size of up to $90 million.
The offering is scheduled to close on December 21,
The Toronto Stock Exchange (“TSX”) has conditionally approved the listing of the Units under the symbol of ADC.UN, subject to the fulfillment of TSX requirements.
The fund has been created to obtain exposure to a diversified portfolio comprised primarily of convertible debentures of Canadian issuers. It will be managed by Toronto-based First Asset Investment Management Inc.
The fund’s investment objectives are to provide unitholders with Units with quarterly tax-advantaged distributions; and the opportunity for capital appreciation.
The distributions are initially targetted to be 6% per year on the subscription price of $10.00 per unit ($0.15 per unit per quarter or $0.60 per year). The fund will not have a fixed quarterly distribution amount but intends to set periodic distribution targets.
The syndicate of agents for this offering is being led by CIBC, National Bank Financial Inc. and RBC Capital Markets, and includes, BMO Capital Markets, Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Raymond James Ltd., Canaccord Genuity Corp., Wellington West Capital Markets Inc., Dundee Securities Corporation, Macquarie Private Wealth Inc. and Mackie Research Capital Corporation.
The fund has granted an over-allotment option to the agents to acquire up to a further $13.5 million of units at a price of $10 per unit exercisable on or before the 30th day following the closing.
IE