Canadian 50 Advantaged Preferred Share Fund Closes Treasury Offering of Class A and Class F Units
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./
TORONTO, Dec. 5, 2012 /CNW/ - Connor, Clark & Lunn Capital Markets Inc. (the "Manager") is pleased to announce the closing of a treasury offering of Units of Canadian 50 Advantaged Preferred Share Fund (the "Fund"). The Fund raised total gross proceeds of $47,603,339.37 from the sale of 1,850,000 Class A Units at a price of $24.33 per Class A Unit and 105,787 Class F Units at a price of $24.51 per Class F Unit which prices were determined so as to be non-dilutive to the net asset value per Unit of existing Unitholders. The Fund has granted to the agents an over-allotment option, exercisable for a period of 30 days from the closing date, to purchase up to an additional 277,500 Class A Units. The Class A Units are listed on the Toronto Stock Exchange under the symbol "CPF.UN".
The Fund's investment objectives are to provide (i) tax-advantaged quarterly cash distributions consisting primarily of returns of capital; and (ii) low-cost exposure to the total return approximating that of the BMO Capital Markets 50 Preferred Share Index (the "Preferred Share 50 Index"). Based on current estimates and the assumptions set out in the prospectus, the Fund's current distribution target is $0.3125 per Unit per quarter, consisting primarily of returns of capital which are not immediately taxable but which reduce a Unitholder's adjusted cost base of its Units.
The Preferred Share 50 Index is a market value weighted index created in 1992 to provide a benchmark representing the Canadian preferred share market and includes 50 Canadian preferred share issues that are listed on the Toronto Stock Exchange which satisfy specific inclusion criteria. Since its inception, the Preferred Share 50 Index has generated an annualized return of 5.58% per year to September 30, 2012.
Connor, Clark & Lunn Capital Markets Inc. is the manager and portfolio manager of the Fund. The Manager is part of the Connor, Clark & Lunn Financial Group, a multi-boutique asset management firm whose affiliated managers are collectively responsible for the investment of over $42 billion in assets as at September 28, 2012. BMO Asset Management Inc. has been retained to manage the Portfolio. BMO Asset Management Inc. had over $45.5 billion in total assets under management as at August 31, 2012 and is an indirect, wholly-owned subsidiary of the Bank of Montreal.
The Units were offered for sale by a syndicate of agents led by BMO Capital Markets and including CIBC, RBC Capital Markets, Scotiabank, National Bank Financial Inc., TD Securities Inc., Raymond James Ltd., Canaccord Genuity Corp., GMP Securities L.P., Mackie Research Capital Corporation, Macquarie Private Wealth Inc., Desjardins Securities Inc. and Manulife Securities Incorporated.
Commissions, management fees and expenses all may be associated with investment funds. Please read the Fund's publicly filed documents which are available from SEDAR at www.sedar.com. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
SOURCE: Canadian 50 Advantaged Preferred Share FundFor further information:
For more information, please visit www.cclcapitalmarkets.com or contact:
Vice President & CFO
Connor, Clark & Lunn Capital Markets Inc.
(416) 214-6182 or 1 (888) 276-2258