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TORONTO, Jan. 18, 2017 /CNW/ - Redwood Asset Management Inc. ("Redwood"), on behalf of Canadian Investment Grade Preferred Share Fund (P2L) (the "Fund"), announced that the Fund has issued, pursuant to the exercise of the over-allotment option by the syndicate of agents, an additional 22,703 Class T Units which, when combined with the gross proceeds from the closing of the initial public offering on December 19, 2016, aggregates total gross proceeds from the offering of approximately $60.5 million. The Class T Units are listed on the Toronto Stock Exchange under the symbol RIGP.UN.
The Fund uses the Unit Traded Fund (UTF) structure which has been developed to accomplish two goals, namely (a) to enable the Fund to invest virtually all of the gross proceeds from the offering in its investment portfolio, and (b) to encourage the Fund's Class T Units to trade in the market at a price not less than 98.50% of their net asset value throughout the life of the Fund.
The Fund's investment objectives are to:
(i) provide holders of Units with monthly cash distributions; and
(ii) maximize the total return to Unitholders over time,
by investing in an actively managed portfolio comprised primarily of preferred shares of Canadian issuers.
The Fund intends to provide Unitholders with monthly cash distributions initially targeted to be approximately $0.1146 per Unit per month, corresponding to an annualized yield of 5.50% per annum based on the original subscription price of $25.00 per Unit.
The Units have been assigned a rating of P-2 (low)f by Standard & Poor's, a division of The McGraw-Hill Companies, Inc.
The offering was made on a best efforts agency basis in each of the provinces and territories in Canada and the syndicate of agents for the offering was led by National Bank Financial Inc. and included BMO Capital Markets, CIBC, Scotiabank, GMP Securities L.P., Canaccord Genuity Corp., Raymond James Ltd., Desjardins Securities Inc., Industrial Alliance Securities Inc., Manulife Securities, Echelon Wealth Partners Inc., Mackie Research Capital Corporation and PI Financial Corp.
About Redwood Asset Management Inc.
Redwood Asset Management Inc. is a Toronto-based investment fund manager focused on delivering unique investment solutions managed by boutique global investment managers to Canadian investors. Redwood is a wholly-owned subsidiary of Purpose Investments Inc. More information about Redwood's product offerings is available at www.redwoodasset.com.
SOURCE Canadian Investment Grade Preferred Share Fund (P2L)
For further information: Dan Rubin, Vice President, Marketing, 416-583-3853