TORONTO, December 14, 2010 - Canadian Advantaged Convertibles Fund (the "Fund") announces that it has filed a final prospectus dated December 10, 2010 with the securities regulatory authorities of all of the Canadian provinces and territories for an initial public offering of trust units (the "Units") at $10 per Unit, for a maximum offering size of up to $90 million, plus any units issued pursuant to the over-allotment option granted to the agents to acquire up to a further $13.5 million of units at a price of $10 per Unit exercisable on or before the 30th day following the closing. The offering is scheduled to close on December 21, 2010 (the "Closing Date"). The Toronto Stock Exchange ("TSX") has conditionally approved the listing of the Units under the symbol of ADC.UN, subject to the fulfillment of TSX requirements.
The Fund has been created to obtain exposure to a diversified portfolio comprised primarily of convertible debentures of Canadian issuers. The Fund will be managed by First Asset Investment Management Inc. ("First Asset").
The Fund's investment objectives are to provide holders of Units with:
- quarterly tax-advantaged distributions; and
- the opportunity for capital appreciation.
The distributions are initially targeted to be 6% per annum on the subscription price of $10.00 per Unit ($0.15 per Unit per quarter or $0.60 per annum). The Fund will not have a fixed quarterly distribution amount but intends to set periodic distribution targets.
The syndicate of agents for this offering is being led by CIBC, National Bank Financial Inc. and RBC Capital Markets, and includes, BMO Capital Markets, Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Raymond James Ltd., Canaccord Genuity Corp., Wellington West Capital Markets Inc., Dundee Securities Corporation, Macquarie Private Wealth Inc. and Mackie Research Capital Corporation.
For further information, please call Rob MacNiven, Investor Relations, First Asset at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com.