TORONTO, Dec. 17 /CNW/ - Mulvihill Capital Management Inc. ("MCM" or the
"Manager") is pleased to announce that Canadian Utilities & Telecom
Income Fund (the "Fund") has completed its initial public offering of
4,900,000 units (the "Units") for gross proceeds of $58.8 million.
Each Unit is offered at a price of $12.00. The Units commence trading
on the Toronto Stock Exchange today under the symbol UTE.UN.
The Fund's investment objectives are (i) to pay holders of its Units
("Unitholders") monthly distributions in an amount targeted to be 7.0%
per annum on the net asset value ("NAV") of the Fund; and (ii) to
preserve and enhance the Fund's NAV while reducing portfolio
The Fund will seek to achieve its investment objectives by investing in
a portfolio consisting principally of equity securities of large
capitalization (over $1 billion) utility and, to a lesser degree,
telecommunications issuers listed on the Toronto Stock Exchange
("TSX"). Issuers selected for inclusion in the portfolio must have a
minimum distribution yield of 2.0% per annum.
MCM may also invest up to 20% of the Fund's NAV in equity securities of
other utilities and telecommunications issuers listed on a North
American stock exchange, subject to a minimum market capitalization of
$250 million and a minimum distribution yield of 2.0% per annum. MCM
intends generally to include between 15 and 20 issuers in the Fund's
MCM believes, based on its research and analysis, that a large
capitalization portfolio of securities in the utilities and
telecommunications sectors is an attractive long-term investment due to
the more predictable cash flows generated from long-term tangible
assets and high barriers to entry, combined with generally high and
historically growing dividends from issuers in these two sectors which
are generally viewed as being defensive investments.
The following table lists the current universe of issuers in which the
Fund may invest (the "Portfolio Universe"):
Provident Energy Trust
Inter Pipeline Fund
Just Energy Income Fund
Manitoba Telecom Services Inc.
Rogers Communications Inc.
Pembina Pipeline Corporation
Capital Power Corporation
Bell Aliant Regional
Fort Chicago Energy Partners L.P.
Shaw Communications Inc.
Communications Income Fund
Canadian Utilities Limited
Keyera Facilities Income Fund
Northland Power Income Fund
Brookfield Renewable Power Fund
Capital Power Income L.P.
The syndicate of agents for the offering was co-led by RBC Capital
Markets and CIBC World Markets Inc. and included BMO Nesbitt Burns
Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities
Inc., HSBC Securities (Canada) Inc., Raymond James Ltd., Canaccord
Genuity Corp., Dundee Securities Corporation, Mackie Research Capital
Corporation and Manulife Securities Incorporated.
For further information, please contact our investor relations line at
416.681.3966, toll free at 1.800.725.7172 or visit www.mulvihill.com.
SOURCE Canadian Utilities
For further information:
|John Mulvihill, President and CEO |
David Roode, President, Fund Services
Aaron Ho, Vice-President, Finance
|Mulvihill Structured Products|
121 King Street West
Toronto, Ontario, M5H 3T9