ING High Income Floating Rate Fund Closes $80 Million Initial Public Offering
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./
TORONTO, Oct. 22, 2013 /CNW/ - Aston Hill Capital Markets Inc. (the "Manager") is pleased to announce the closing of the initial public offering of ING High Income Floating Rate Fund (the "Fund"). The Fund raised gross proceeds of approximately $80 million including $76,000,000 from the sale of 7,600,000 Class A Units and U.S. $4,003,300 from the sale of 400,330 Class U Units. The Fund has granted to the agents an over-allotment option, exercisable for a period of 30 days from today's date, to purchase an additional 1,140,000 Class A Units. The Class A Units are listed on the Toronto Stock Exchange ("TSX") under the symbol IHL.UN.
The Fund's investment objectives are to (i) provide monthly cash distributions; (ii) preserve capital; and (iii) generate increased returns in the event that short-term market interest rates rise, in each case, through an investment in a diversified portfolio (the "Portfolio") consisting primarily of first lien and second lien secured floating rate loans ("Loans") of non-investment grade North American borrowers, actively managed by ING Investment Management Co. LLC (the "Sub-Advisor"). The Portfolio will consist primarily of secured floating rate corporate loans that are expected to generate increased returns in the event that short term interest rates rise above any applicable LIBOR floors.
The Fund will not have a fixed distribution policy, but intends to make monthly distributions based on the actual and expected returns on the Portfolio. Given that the majority of the Portfolio will be invested in Loans which are floating rate, returns may vary with changes in interest rates. The Fund's initial distribution target is expected to be $0.05417 per Class A Unit per month (U.S. $0.05417 in the case of the Class U Units), representing an initial yield on the Unit issue price of 6.5% per annum.
The Sub-Advisor is an indirect, wholly owned subsidiary of ING U.S., Inc. ("ING U.S."), an indirect majority-owned subsidiary of ING Groep N.V., one of the world's largest financial services companies. The Sub-Advisor is part of ING U.S. Investment Management, one of ING U.S.'s businesses. The ING Senior Loan Group, the unit of the Sub-Advisor that will manage the Portfolio, is located in Scottsdale, Arizona (with an additional office in London, UK), and consists of a team of 24 investment professionals and 24 support staff. The ING Senior Loan Group currently manages over U.S. $17 billion in assets that are substantially similar to the Loan investments that it will manage for the Fund across 28 portfolios (not including the Fund).
The Units are being offered for sale by a syndicate of agents co-led by BMO Capital Markets and CIBC and including RBC Capital Markets, Scotiabank, TD Securities Inc., GMP Securities L.P., National Bank Financial Inc., Canaccord Genuity Corp., Macquarie Private Wealth Inc., Raymond James Ltd., Desjardins Securities Inc., Mackie Research Capital Corporation and Manulife Securities Incorporated.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities of the Fund have not been registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States or to a U.S. person absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.
This offering is only made by prospectus. The prospectus contains important detailed information about the securities being offered. Copies of the prospectus may be obtained from any of the above-mentioned agents. Investors should read the prospectus before making an investment decision.
SOURCE Aston Hill Capital Markets Inc.For further information:
For more information, please visit www.astonhill.ca or contact:
Vice President & CFO
Aston Hill Capital Markets Inc.
(416) 583-2300 or 1 (800) 513-3868