TORONTO, March 12, 2009 - Preferred Share Investment Trust (the "Trust") announces that it has filed a final prospectus for its initial public offering of trust units (the "Units") for a total maximum offering size of up to $100 million. The offering is scheduled to close on April 3, 2009. The Toronto Stock Exchange ("TSX") has conditionally approved the listing of the Units under the symbol of PSF.UN, subject to the fulfillment of TSX requirements.
The Trust has been created to invest 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 with the opportunity for growth of their investment value through any capital appreciation of the Portfolio and quarterly distributions.
The Portfolio will be actively managed by Catapult Financial Management Inc., a subsidiary of Aston Hill Financial Inc. Mr. Ben Cheng will be the lead portfolio manager responsible for the Portfolio. First Asset Investment Management Inc. will act as the Manager of the Trust.
The Trust's investment objectives are:
- to provide Unitholders with quarterly distributions, estimated to initially be $0.175 per Unit ($0.70 per annum representing an annual yield of 7.0% based on the original issue price of a Unit of $10.00); and
- to provide Unitholders with the opportunity for capital appreciation from the performance of the Portfolio.
At closing the Manager will issue a note ("Note") to the Trust in an amount equal to the fees and expenses associated with the offering and accordingly, it is anticipated that the initial net asset value per Unit will be $10.00 (assuming that the price of the exchange eligible securities on the Closing Date is the same as the price that was used to calculate the exchange ratios). The Note will be used to reimburse the Trust for the expenses of the offering and will be repaid over eight years with interest.
The syndicate of agents for this offering is being led by CIBC World Markets Inc. and includes BMO Capital Markets, National Bank Financial Inc., RBC Capital Markets, Scotia Capital Inc., TD Securities Inc., Wellington West Capital Markets Inc., Canaccord Capital Corporation, Dundee Securities Corporation, HSBC Securities (Canada) Inc., Manulife Securities Incorporated, Raymond James Ltd., Richardson Partners Financial Limited, Blackmont Capital Inc. and GMP Securities L.P.
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.