MONTREAL, May 31, 2011 /CNW/ - O'Leary Funds Management LP (the
"Manager") is pleased to announce that a preliminary prospectus for the
Floating Rate Income Fund (the "Fund") has been filed with, and a
receipt therefor has been issued by, the securities regulatory
authorities in each of the provinces of Canada.
The Fund was created to provide holders of units ("Unitholders") of the
Fund with exposure to a diversified portfolio comprised of senior
secured floating rate loans, floating rate notes and other debt
obligations of investment and non-investment grade global issuers.
The Fund's investment objectives are (i) to provide Unitholders with
monthly tax-advantaged distributions consisting initially primarily of
returns of capital; and (ii) to preserve capital.
The Fund is an investment trust governed by the laws of the Province of
Ontario which proposes to issue transferable class A units (the "Class
A Units") and class U units (the "Class U Units" and collectively with
the Class A Units, the "Units") of the Fund at a price of $12.00 per
Class A Unit and U.S. $12.00 per Class U Unit. The Class U Units are
designed for investors wishing to make their investment in U.S.
dollars. The initial monthly distributions are targeted to be $0.0525
per Class A Unit (U.S. $0.0525 in the case of the Class U Units) ($0.63
per annum (U.S. $0.63 in the case of the Class U Units) representing an
annual cash distribution of 5.25% based on the $12.00 per Class A Unit
issue price (U.S. $12.00 in the case of the Class U Units)).
The Manager has retained Stanton Asset Management Inc. (the "Portfolio
Advisor") to provide investment advisory services to the Fund. The
Portfolio Advisor is a Canadian investment firm focused on global
investment opportunities, and is also the manager of a variety of
The syndicate of agents is co-led by CIBC and RBC Capital Markets, and
includes BMO Capital Markets, TD Securities Inc., National Bank
Financial Inc., Scotia Capital Inc., Macquarie Capital Markets Canada
Ltd., Wellington West Capital Markets Inc., Canaccord Genuity Corp.,
GMP Securities L.P., HSBC Securities (Canada) Inc., Raymond James Ltd.,
Dundee Securities Ltd., Mackie Research Capital Corporation, Manulife
Securities Incorporated and MGI Securities Inc. (collectively, the
Certain statements included in this news release constitute
forward-looking statements, including, but not limited to, those
identified by the expressions "expect", "intend", "will" and similar
expressions to the extent they relate to the Fund. The forward-looking
statements are not historical facts but reflect the Manager's current
expectations regarding future results or events. These forward-looking
statements are subject to a number of risks and uncertainties that
could cause actual results or events to differ materially from current
expectations. Although the Manager believes that the assumptions
inherent in the forward-looking statements are reasonable,
forward-looking statements are not guarantees of future performance
and, accordingly, readers are cautioned not to place undue reliance on
such statements due to the inherent uncertainty therein. The Manager
undertakes no obligation to update publicly or otherwise revise any
forward-looking statement or information whether as a result of new
information, future events or other such factors which affect this
information, except as required by law.
A preliminary prospectus dated May 30, 2011 containing important
information relating to these securities has been filed with securities
commissions or similar authorities in certain jurisdictions of Canada.
The preliminary prospectus is still subject to completion or amendment.
Copies of the preliminary prospectus may be obtained from any of the
Agents. 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
All capital terms noted herein but not defined are as per the
preliminary prospectus dated May 30, 2011.
SOURCE Floating Rate Income Fund
For further information:
for media inquiries or additional information: please contact O'Leary Funds at email@example.com or at 1-877-849-2004 x226.