O’Leary Founder’s Series Income & Growth Fund has completed its $150 million initial public offering, O’Leary Funds Management LP said Friday.
The units are now trading on the Toronto Stock Exchange using the ticker symbol OFS.a.
Each unit consists of one transferable trust unit and one trust unit purchase warrant. The units will separate into trust units and warrants within 30 days.
Each warrant entitles the holder to purchase one trust unit for $11.50 on or before 17:00 ET on Sept. 30, 2010. Warrants not exercised by then will be void and of no value.
Once separated, the trust units and the warrants will trade on the TSX independently under the symbols OFS.un and OFS.wt.
The fund has been created to invest in an actively managed portfolio comprised primarily of publicly traded corporate bonds, preferred securities and dividend-paying common equity securities of mid and large-cap Canadian and global issuers. These securities are largely institutionally traded and denominated in foreign currencies, and are often difficult for most retail investors to purchase.
The fund will also invest in dividend-paying common equities, which portfolio advisor Stanton Asset Management Inc. believes is an attractive strategy during a period of uncertain corporate earnings, to earn dividend income and remain positioned to participate in potential corporate earnings and capital appreciation.
The Fund will permit investors to capitalize on the knowledge and capabilities of Stanton and Savtrev, Inc., O’Leary Funds says.
The fund’s investment objectives are to maximize total return for holders of trust units, and to provide unitholders with monthly distributions initially
targeted to be 6¢ per trust unit, or 72¢ per year. This represents an annual cash distribution of 6.0% based on the $12 per unit issue price.
The syndicate of agents is co-led by CIBC World Markets Inc. and RBC Capital Markets and includes BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., Blackmont Capital Inc., GMP Securities L.P., HSBC Securities (Canada) Inc., Canaccord Capital Corp., Desjardins Securities Inc., Dundee Securities Corp., Manulife Securities Incorporated, MGI Securities Inc., Raymond James Ltd., Research Capital Corp. and Wellington West Capital Markets Inc.
The fund has granted the agents a 30-day over-allotment option to acquire up to an additional 1.875 million units.
IE