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TORONTO, Jan. 31, 2014 /CNW/ - Aston Hill Capital Markets Inc. (the
"Manager") is pleased to announce that a preliminary prospectus for
Euro Banc Capital Securities Trust (the "Fund") has been filed and
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 (together, the "Units") of the Fund. The Fund
is a closed-end investment fund to be established under the laws of the
Province of Ontario which proposes to offer Units at a price of $10.00
The Fund's investment objectives are to (i) provide quarterly cash
distributions; and (ii) preserve capital, in each case through
investment in a portfolio consisting primarily of Capital Securities
issued by investment grade European financial institutions, actively
managed by Cairn Capital Limited. Capital Securities are subordinated
capital instruments (excluding common equity) issued by financial
institutions that are designed to meet the regulatory capital
requirements of the issuer's regulator.
The Fund will not have a fixed distribution policy, but intends to make
quarterly distributions based on the actual and expected returns on the
Portfolio. Based on current estimates and the assumptions set out in
the preliminary prospectus, the Fund's initial distribution target is
expected to be $0.15 per Unit per quarter, representing an initial
yield on the Unit issue price of 6.0% per annum.
Cairn Capital Limited, a specialist credit asset management and advisory
business established in 2004 with US$21.4 billion of assets under
management and advice as at December 31, 2013 (together with its
affiliates), comprised of US$3.1 billion of discretionary assets under
management, US$5 billion of legacy assets under management and US$13.3
billion of assets under long term advice, will act as the investment
manager of the Fund in connection with the selection, purchase and sale
of Capital Securities.
Aston Hill Capital Markets Inc. will act as Manager of the Fund. The
Manager is a leading provider of investment products having raised over
$2.5 billion in assets. The Manager is part of Aston Hill Financial
Inc., a diversified asset management company with a suite of retail
mutual funds, closed end funds, private equity funds, hedge funds and
segregated institutional funds. The company is also engaged in the
administration of Argent Energy Trust. Aston Hill Financial has
offices in Calgary, Toronto and Halifax and has over $7.8 billion in
assets under management.
The Units are being offered for sale by a syndicate of agents led by BMO
Capital Markets and including CIBC, RBC Capital Markets, Scotiabank, TD
Securities Inc., GMP Securities L.P., National Bank Financial Inc.,
Canaccord Genuity Corp., Raymond James Ltd., Burgoenvest Bick
Securities Limited, Desjardins Securities Inc., Dundee Securities
Corporation, Mackie Research Capital Corporation and Manulife
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 any of the
agents listed 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.
Commissions, management fees and expenses all may be associated with
investment funds. Please read the Fund's publicly filed documents which
are available from SEDAR at www.sedar.com. Investment funds are not guaranteed, their values change frequently
and past performance may not be repeated.
SOURCE: Aston Hill Capital Markets Inc.
For further information:
please visit www.astonhill.ca or contact:
Vice President & CFO
Aston Hill Capital Markets Inc.
(416) 583-2300 or 1 (800) 513-3868