TORONTO, April 28 /CNW/ - Canadian High Yield Focus Fund (the "Fund")
announces that it has filed a preliminary prospectus dated April 27,
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 $12.00 per Unit.
The offering will be limited to a maximum of $75 million (6,250,000
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., Scotia Capital Inc., TD Securities
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.
A preliminary prospectus containing important information relating to
these securities has been filed with securities commissions or similar
authorities in each of the provinces and territories of Canada. The
preliminary prospectus is still subject to completion or amendment.
Copies of the preliminary prospectus may be obtained from one of the
agents noted above. There will not be any sale or any acceptance of an
offer to buy the securities until a receipt for the final prospectus
has been issued.
SOURCE Canadian High Yield Focus Fund
For further information:
please call Raj Lala, President, Propel Capital at 416-572-2364 or visit www.propelcapital.ca