Jun. 16, 2011 (Canada NewsWire Group) --
TORONTO, June 16, 2011 /CNW/ - Canadian High Yield Focus Fund (the "Fund") is pleased to announce the closing of its initial public offering (the "Offering"). Pursuant to the Offering, the Fund issued 3.4 million of transferable trust units (the "Units") at $12 per Unit, for gross proceeds of $40.8 million. The Fund has granted the agents for the offering an over-allotment option to acquire up to 0.5 million of the units issued at a price of $12 per share exercisable at any time during the next thirty days. The Units are listed on the Toronto Stock Exchange under the symbol CAH.UN. The Fund will obtain exposure to a diversified portfolio comprised primarily of high yield bonds of Canadian issuers. The Fund will be managed by Propel Capital Corporation ("Propel"). The Fund's portfolio manager will be Fiera Sceptre Inc. ("Fiera").
The Fund's investment objectives are to provide holders of Units with:
(i) quarterly tax-advantaged distributions; and
(ii) capital preservation.
The distributions are initially targeted to be 6.5% per annum on the subscription price of $12.00 per Unit ($0.195 per Unit per quarter or $0.78 per annum). The Fund will not have a fixed distribution amount. The amount of quarterly distributions will be based on Propel and Fiera's assessment of anticipated cash flow from time to time.
Propel is responsible for creating, structuring, managing, and promoting the Fund. Propel will retain Fiera to provide portfolio management services to the Fund. Fiera is one of the largest independent money managers in Canada with over $29 billion in assets under management, including approximately $18 billion in fixed income assets.
The syndicate of agents for this offering is being co-led by BMO Capital Markets, CIBC and RBC Capital Markets, and includes GMP Securities L.P., National Bank Financial Inc., TD Securities Inc., Scotia Capital Inc., HSBC Securities (Canada) Inc., Desjardins Securities Inc., Canaccord Genuity Corp., Dundee Securities Ltd., Macquarie Private Wealth Inc., Raymond James Ltd., Wellington West Capital Markets Inc. and Manulife Securities Incorporated.
This offering is only made by prospectus. The prospectus contains important detailed information about the security being offered. Copies of the detailed prospectus may be obtained from one of the agents noted above. Investors should read the prospectus before making an investment decision.
please call Raj Lala, President, Propel Capital at 416-572-2364 or visit www.propelcapital.ca
