Front Street MLP Income Fund Ltd. has filed a preliminary prospectus for a proposed initial public offering of equity shares at $10 per share, Front Street Capital said Tuesday.

The fund has been created to provide investors with exposure to the performance of an actively managed, diversified notional portfolio of energy infrastructure master limited partnerships (MLPs). MLPs are U.S. limited partnerships that are publicly traded on U.S. securities exchanges. MLPs are primarily engaged in the transportation, storage, processing, refining, marketing, exploration and production and mining of minerals or natural resources.

Toronto-based Front Street Capital 2004 is the manager of the fund, and SteelPath Fund Advisors, LLC, based in Dallas, Tex., is the specialist MLP portfolio advisor.

Through its exposure to the MLP Portfolio, the fund will seek to provide investors with quarterly tax-advantaged cash distributions, initially targeted to be 13.75 cents per quarter, to yield 5.5% on the initial subscription price of a unit and provide long-term capital appreciation.

The proposed offering is made through a syndicate of investment dealers, co-led by CIBC World Markets Inc. and RBC Capital Markets, and which also includes National Bank Financial Inc., BMO Capital Markets, Scotia Capital Inc., Canaccord Genuity Corp., Dundee Securities Corporation, GMP Securities L.P., HSBC Securities (Canada) Inc., Macquarie Capital Markets Canada Ltd., Raymond James Ltd., Wellington West Capital Markets Inc., Sherbrooke Street Capital (SSC) Inc. and Tuscarora Capital Inc.

IE