TORONTO, January 15, 2010 - Canadian Energy Convertible Debenture 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 at $10 per unit, for gross proceeds of $100 million by way of cash subscriptions and pursuant to the Exchange Option. The units are listed on the Toronto Stock Exchange ("TSX") under the symbol CFE.UN.
The Fund will invest in an actively managed portfolio comprised primarily of convertible debentures of Canadian energy issuers.
The Fund's investment objectives are to provide holders of Units with:
- monthly distributions; and
- the opportunity for capital appreciation.
The distributions are initially targeted to be 7% per annum on the subscription price of $10.00 per Unit ($0.05833 per Unit per month or $0.70 per annum).
The Fund has granted the agents for the offering an over-allotment option to acquire additional units exercisable at any time during the next thirty days.
The syndicate of agents for this offering was led by CIBC World Markets Inc. and National Bank Financial Inc., and included BMO Capital Markets, RBC Capital Markets, Scotia Capital Inc., TD Securities Inc., Dundee Securities Corporation, Raymond James Ltd., Canaccord Financial Ltd., GMP Securities L.P., HSBC Securities (Canada) Inc., Manulife Securities Incorporated 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.