Canadian Banc Capital Securities Trust Files Final Prospectus



    TORONTO, May 28 /CNW/ - Connor, Clark & Lunn Capital Markets Inc. (the
"Manager") is pleased to announce that the final prospectus for Canadian Banc
Capital Securities Trust ("Canadian Banc" or the "Fund") has been receipted by
the securities regulatory authorities of all the Canadian provinces and
territories for an initial public offering of Class A Units and Class F Units
(the "Units") of the Fund. The maximum amount of the offerings is $100
million. The offerings are expected to close on or about June 9, 2009. The
Toronto Stock Exchange ("TSX") has conditionally approved the listing of the
Class A Units under the symbol of CSB.UN, subject to the fulfillment of TSX
requirements. Class F Units will not be listed on a stock exchange but may be
converted into Class A Units on a weekly basis.
    Canadian Banc's investment objectives are to (i) provide Unitholders with
attractive tax-advantaged quarterly cash distributions, and (ii) return to
Unitholders the original issue price of the Units upon termination of the Fund
on June 30, 2014. Distributions are initially targeted to be $1.50 per annum
per Unit consisting primarily of returns of capital, representing a yield on
the Unit issue price of 6.0% per annum.
    The Fund will seek to achieve its investment objectives through exposure
to an actively managed portfolio consisting primarily of Innovative Tier 1
Capital Securities of the six largest Canadian banks, including such issues as
TD Capital Trust IV Notes (TD CaTS IV), Scotiabank Capital Trust Securities
(Scotia BaTS II) and BMO Capital Trust II Notes (BoATS VI). The Portfolio
Manager believes that an attractive opportunity currently exists to invest in
Innovative Tier 1 Capital Securities for the following reasons:

    
    -   Canadian banks have been recognized as well capitalized and
        conservatively run financial institutions, and were recently ranked
        No. 1 globally in the ''Soundness of Banks'' category by the World
        Economic Forum in its Global Competitiveness Report 2008-2009. The
        soundness of Canadian banks relative to their international
        counterparts has been particularly highlighted during the recent
        financial crisis, during which Canadian banks have maintained
        Investment Grade credit ratings while many US and European banks have
        been forced into restructuring, bankruptcy or partial or full
        government nationalization.
    -   The recent volume of issuance by Canadian banks of preferred shares
        and common shares to strengthen their balance sheets has increased
        their regulatory capital levels to levels approaching historical
        highs, and has further enhanced the downside protection of Innovative
        Tier 1 Capital Securities.
    -   Innovative Tier 1 Capital Securities currently provide high yields on
        an absolute basis and relative to Government Bonds and to equities.
    -   Current spreads of Innovative Tier 1 Capital Securities over
        Government Bonds provide the opportunity for capital gains if spreads
        return to their long-term averages.
    -   Innovative Tier 1 Capital Securities represent a class of securities
        generally otherwise available only to institutional investors on
        issuance.
    

    Securities in the Indicative Portfolio have a weighted average Investment
Grade credit rating of A, a weighted average yield to the first date upon
which the securities may be called at par of 6.74%, a current yield of 7.32%
and an average term to call (to the first date upon which the securities may
be called at par) of approximately 9.38 years.
    Connor, Clark & Lunn Investment Management Ltd. will act as Portfolio
Manager to the Fund. The Portfolio Manager, part of the Connor, Clark & Lunn
Financial Group, was established in March 1982 and has offices in Vancouver
and Toronto. The Portfolio Manager managed assets worth approximately $16.7
billion as at December 31, 2008, approximately $6.9 billion of which is in
fixed income securities.
    The Units are being offered for sale by a syndicate of agents led by BMO
Nesbitt Burns Inc., CIBC World Markets Inc. and RBC Dominion Securities Inc.
and includes Scotia Capital Inc., National Bank Financial Inc., TD Securities
Inc., HSBC Securities (Canada) Inc., Richardson Partners Financial Limited,
Dundee Securities Corporation, Wellington West Capital Markets Inc., Blackmont
Capital Inc., Canaccord Capital Corporation, Desjardins Securities Inc., GMP
Securities L.P., Manulife Securities Incorporated, Raymond James Ltd., and
Research Capital Corporation.

    This press release shall not constitute an offer to sell or the
solicitation of an offer to buy. A copy of the final prospectus may be
obtained from any of the agents forming part of the syndicate.





For further information:

For further information: please visit www.cclcapitalmarkets.com or
contact: Darren Cabral, Vice President, Connor, Clark & Lunn Capital Markets
Inc., (416) 214-6182 or (888) 276-2258, dcabral@cclgroup.com

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