TORONTO, Ontario, October. 16, 2012 - First Asset Diversified Convertible Debenture Fund (the "Fund") (TSX:DCD.UN) announces that the Fund's treasury offering (the "Offering") of units (the "Units") has been priced at $17.62 per Unit. The closing of the Offering is expected to occur on or before October 31, 2012.
The Fund's investment objectives are to provide Unitholders with quarterly cash distributions together with the opportunity for capital appreciation. The Fund provides Unitholders with exposure, on a tax advantaged basis, to a portfolio that consists primarily of bonds and debentures which can be converted into equity securities at the option of the holder and/or issuer at a specified price ("Convertible Debentures") and other securities of publicly-listed issuers (including in particular, equity securities acquired upon conversion of Convertible Debentures) (the "Portfolio"). The Portfolio is owned by First Asset DCD Portfolio Fund. The return to the Fund is dependent upon the performance of First Asset DCD Portfolio Fund by virtue of a forward agreement with a Canadian chartered bank.
The Fund currently pays a quarterly distribution in the amount of $0.30 per Unit. The Fund's manager, First Asset Investment Management Inc., will pay all of the expenses of the Offering other than the Agents' fees.
The Offering is being made on a best efforts agency basis in each of the provinces of Canada through a syndicate of investment dealers led by CIBC, co-led by RBC Capital Markets, National Bank Financial Inc. and TD Securities Inc., and including BMO Capital Markets, Scotiabank, Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd. and Macquarie Private Wealth Inc.
For further information, please contact Rob MacNiven, Investor Relations, First Asset at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com
A preliminary short form prospectus containing important information relating to the Units has been filed with securities commissions or similar authorities in all provinces of Canada. The preliminary short form prospectus is still subject to completion or amendment. Copies of the preliminary short form prospectus may be obtained from your registered financial advisor. There will not be any sale or any acceptance of an offer to buy the Units until a receipt for the final prospectus has been issued.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.