O’Leary Funds Management LP has completed the initial public offering of 10.5 million units for the O’Leary Canadian Income Opportunities Fund, the company announced on Thursday.

The units were offered at a price of $12.00 per unit for aggregate gross proceeds of $126 million. The fund has granted the agents an over-allotment option to acquire up to an additional 1,575,000 units.

The fund invests in an actively managed portfolio comprised primarily of publicly-traded securities of mid and large-cap Canadian issuers, providing investors with both income and potential for capital appreciation. It will invest primarily in corporate bonds, convertible debt securities, preferred shares, as well as income trust units and dividend-paying equity securities of such issuers.

According to the portfolio advisor, Stanton Asset Management Inc., market conditions have become attractive for investing in income-generating securities of mid and large-cap issuers domiciled in Canada, including securities that are senior to common equities and securities of income trusts.

Each unit consists of one transferable trust unit and one trust unit purchase warrant. Each warrant entitles the holder to purchase one trust unit at a subscription price of $12.00 by Nov. 30, 2010.

The trust units and warrants will trade on the Toronto Stock Exchange independently under the symbols: OCY.un and OCY.wt.

The fund will aim to provide unitholders with monthly distributions of $0.09 per trust unit initially, representing an annual cash distribution of 9% based on the $12.00 per unit issue price.

IE