TORONTO, May 20, 2011 - North American 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 10 million units (the "Units") at $10 per Share, for gross proceeds of $100 million. The Fund has granted the agents for the offering an over-allotment option to acquire additional shares at a price of $10 per share exercisable at any time during the next thirty days. The units are listed on the Toronto Stock Exchange under the symbol NCD.UN.
The Fund has been created to obtain exposure to an actively managed, diversified portfolio (the "Portfolio") comprised primarily of convertible debentures of Canadian, U.S. and global issuers and to seek to provide a good risk-adjusted way to invest in the Canadian, U.S. and global markets, through a combination of stable current income, security of principal and the opportunity for capital appreciation. Initially, it is expected that the Portfolio will be comprised of approximately 45% Canadian issuers, 45% U.S. issuers and 10% global issuers. The Fund will be managed by First Asset Investment Management Inc.
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 5% per annum on the subscription price of $10.00 per Unit ($0.125 per Unit per quarter or $0.50 per annum). The Fund will not have a fixed distribution amount but intends to set periodic distribution targets based on First Asset's estimate of distributable cash flow of the Fund for the period.
The syndicate of agents for this offering was led by CIBC, National Bank Financial Inc. and RBC Capital Markets, and included, BMO Capital Markets, Scotia Capital Inc., TD Securities Inc., GMP Securities L.P., Canaccord Genuity Corp., HSBC Securities (Canada) Inc., Raymond James Ltd., Mackie Research Capital Corporation, Macquarie Private Wealth Inc. and Wellington West Capital Markets Inc.
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.