TORONTO, December 21, 2010 - Canadian Advantaged Convertibles Fund (the "Fund") is pleased to announce the closing of its initial public offering. Pursuant to the offering, the Fund issued an aggregate of 9.5 million units (the "Units") at $10 per Share, for gross proceeds of $95 million. This includes a partial exercise by the agents of the over-allotment option granted to them by the Fund. Under this option, the agents may acquire an additional 850,000 units at a price of $10 per unit exercisable at any time during the next thirty days. The units are listed on the Toronto Stock Exchange under the symbol ADC.UN.
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 was 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.