Toronto, October 28, 2011 - Preferred Share Investment Trust (the "Fund") (TSX: PSF.UN) announces that it has filed a final short form prospectus in each of the provinces of Canada with respect to an additional offering (the "Offering") of up to 4,850,000 Units (the "Units") of the Fund at a price of $11.41 per Unit. The Fund has granted the agents for the Offering an over-allotment option to acquire up to 15% of the Units issued under the Offering on the same terms exercisable for a period of thirty days following the closing of the Offering. The closing of the Offering is expected to occur on or about Tuesday, November 8, 2011.
The Fund invests in an actively managed portfolio (the "Portfolio") comprised primarily of investment grade preferred shares and to a lesser extent investment grade corporate debt and convertible bonds in order to provide unitholders ("Unitholders") with quarterly distributions and the opportunity for growth of their investment value through any capital appreciation of the Portfolio.
The Portfolio is actively managed by Aston Hill Investments Inc. (formerly, Catapult Financial Management Inc.). First Asset Investment Management Inc. is the manager of the Fund.
The Fund's investment objectives are to provide Unitholders with:
- quarterly distributions; and
- the opportunity for capital appreciation from the performance of the Portfolio.
As with the Fund's initial public offering in April, 2009, the Manager will reimburse the Fund for the expenses of the Offering not borne by purchasers under the Offering and the agency fees by issuing to the Fund a promissory note (or an amended promissory note) in respect of such amount. Accordingly, the net asset value per Unit will be unaffected by the expenses of the Offering.
The Offering is being made on a best efforts agency basis in each of the provinces of Canada through a syndicate of investment dealers co-led by CIBC, BMO Capital Markets, National Bank Financial Inc. and RBC Capital Markets, and including Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Dundee Securities Ltd., Macquarie Private Wealth Inc. and Manulife Securities Incorporated.
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.
This offering is only made by prospectus. The prospectus dated October 27, 2011 contains important detailed information about the securities being offered. Investors should obtain a prospectus from one of the Agents and read it carefully before making an investment decision. This investment may not be suitable for all investors. Commissions, trailing commissions, management fees and expenses all may be associated with this investment. An investment in the Fund is not guaranteed, its value changes frequently and past performance may not be repeated.
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.