A final prospectus for the initial public offering of the O’Leary Global Infrastructure Fund has been filed with Canadian securities regulatory authorities, Gencap Funds LP reported Wednesday.
The $100 million offering is expected to close on or about Nov. 14.
Gencap says the fund will permit investors to capitalize on the knowledge and capabilities of portfolio advisor Stanton Asset Management Inc. and O’Leary Funds Inc., who will work together to identify global infrastructure investments.
The fund’s portfolio will be comprised primarily of publicly-traded equity and debt securities of infrastructure issuers with minimum market capitalizations of $1 billion.
The portfolio advisor will invest in equities that it believes provide access to high quality long-term assets, predictable cash flow, high dividend yields, reduced volatility and positive correlation to inflation, as well as capital appreciation, and in bonds that provide a steady income stream. In addition, up to 20% of the fund’s total assets may be invested in equity and debt securities of private issuers having infrastructure assets or operations.
The fund is an investment trust that proposes to issue Class A Combined Units of the fund at a price of $12 per Class A Combined Unit.
Each Class A Combined Unit consists of one transferable Class A trust unit and one Class A Unit purchase warrant. The Class A Combined Units will separate into Class A Units and Class A Warrants upon the earlier of the closing of the over-allotment option and the 30th day following the closing of the offering.
Each Class A Warrant entitles the holder to purchase one Class A Unit at a subscription price of $12 on or before 17:00 ET on Nov. 30, 2009. Class A Warrants not exercised by that time will be void and of no value.
The fund’s investment objectives are:
> to provide holders of Class A Units with monthly distributions initially targeted to be 6¢ per Class A Unit (72¢ per year representing an annual cash distribution of 6% based on the $12 per Class A Combined Unit issue price); and
> to provide long-term capital appreciation through investments in a sector positively correlated to inflation.
The syndicate of agents is co-led by CIBC World Markets Inc., RBC Dominion Securities Inc. and BMO Nesbitt Burns Inc., and includes Scotia Capital Inc., Blackmont Capital Inc., Wellington West Capital Inc., Dundee Securities Corp., HSBC Securities (Canada) Inc., Raymond James Ltd. and Richardson Partners Financial Ltd.
IE
O’Leary Global Infrastructure Fund files final prospectus
- By: IE Staff
- November 5, 2008 November 5, 2008
- 16:30