TORONTO, Feb. 24 /CNW/ - Canadian Convertibles Income Plus Fund (the
"Fund") announces that it has filed a final prospectus dated February
23, 2011 with the securities regulatory authorities of all of the
Canadian provinces and territories for an initial public offering of
transferable trust units (the "Units") of the Fund at $10 per Unit, for
a maximum offering size of up to $90 million, plus any Units issued
pursuant to the over-allotment option. The offering is scheduled to
close on March 9, 2011. The Toronto Stock Exchange ("TSX") has
conditionally approved the listing of the Units under the symbol
CCI.UN, subject to the fulfillment of TSX requirements.
The Fund will obtain exposure to an actively managed diversified
portfolio (the "Portfolio") comprised primarily of convertible
debentures 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
i. quarterly tax-advantaged distributions; and
ii. preservation of capital; and
iii. the opportunity for capital appreciation.
The distributions are initially targeted to be 6.25% per annum on the
subscription price of $10.00 per Unit ($0.15625 per Unit per quarter or
$0.625 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. Fiera is one of the largest independent money managers in
Canada with over $28 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 National Bank
Financial Inc., GMP Securities L.P., Scotia Capital Inc., HSBC
Securities (Canada) Inc., Wellington West Capital Markets Inc.,
Desjardins Securities Inc., Macquarie Private Wealth Inc., Dundee
Securities Corporation, Laurentian Bank Securities Inc. and Manulife
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 one of the above-noted
agents. Investors should read the prospectus before making an
SOURCE Canadian Convertibles Income Plus Fund
For further information:
please call Raj Lala, President, Propel Capital at 416-572-2364 or visit www.propelcapital.ca.