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Wed, March 21, 2012 Advantaged Canadian High Yield Bond Fund Completes $19 Million Offering
March 21, 2012 08:53 ET
Advantaged Canadian High Yield Bond Fund Completes $19 Million Offering
TORONTO, ONTARIO--(Marketwire - March 21, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA.
Scotia Managed Companies Administration Inc. is pleased to announce that the Advantaged Canadian High Yield Bond Fund (the "Fund") (TSX:AHY.UN) has completed the previously announced offering of additional units of the Fund. The Fund issued 1,380,000 Class A Units and 666,200 Class F Units of the Fund at a price of $9.39 per Class A Unit and $9.50 per Class F Unit for aggregate gross proceeds to the Fund of $19,287,100. The Class A Units of the Fund are listed and posted for trading on the Toronto Stock Exchange under the symbol "AHY.UN." The Class F Units are not listed but may be converted into Class A Units on a weekly basis.
The Fund has also granted the agents an over-allotment option, exercisable in whole or in part at any time up to 30 days after closing, to purchase up to an additional 207,000 Class A Units at a price of $9.39 per unit.
The Fund seeks to achieve the following investment objectives: (i) preserve and enhance the net asset value of the Fund; and (ii) provide unitholders with quarterly tax-advantaged distributions consisting of returns of capital and capital gains, through investment exposure to a diversified portfolio of Canadian high yield fixed income securities.
It is anticipated that on or about March 29, 2013, the Fund will become an open-end mutual fund and the Class A Units will be delisted from any stock exchange on which they are then listed and the Class A Units and Class F Units will be redeemable at their net asset value per unit on a weekly basis.
The syndicate of agents for the offering is being led by Scotia Capital Inc., CIBC World Markets Inc. and RBC Dominion Securities Inc., and includes BMO Nesbitt Burns Inc., National Bank Financial Inc., TD Securities Inc., Acumen Capital Finance Partners Limited, Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Dundee Securities Ltd., Macquarie Private Wealth Inc. and Union Securities Ltd.
Certain statements included in this news release constitute forward-looking statements. The forward-looking statements are not historical facts but reflect current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Scotia Managed Companies Administration Inc. and the Fund undertake no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law. Investment funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There is no assurance that the Fund will be able to achieve its distribution and capital preservation objectives or that the full amount of a unitholders investment in the Fund will be returned.
