/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES./
TORONTO, Oct. 22, 2013 /CNW/ - Aston Hill Capital Markets Inc. (the
"Manager") is pleased to announce the closing of the initial public
offering of ING High Income Floating Rate Fund (the "Fund"). The Fund
raised gross proceeds of approximately $80 million including
$76,000,000 from the sale of 7,600,000 Class A Units and U.S.
$4,003,300 from the sale of 400,330 Class U Units. The Fund has
granted to the agents an over-allotment option, exercisable for a
period of 30 days from today's date, to purchase an additional
1,140,000 Class A Units. The Class A Units are listed on the Toronto
Stock Exchange ("TSX") under the symbol IHL.UN.
The Fund's investment objectives are to (i) provide monthly cash
distributions; (ii) preserve capital; and (iii) generate increased
returns in the event that short-term market interest rates rise, in
each case, through an investment in a diversified portfolio (the
"Portfolio") consisting primarily of first lien and second lien secured
floating rate loans ("Loans") of non-investment grade North American
borrowers, actively managed by ING Investment Management Co. LLC (the
"Sub-Advisor"). The Portfolio will consist primarily of secured
floating rate corporate loans that are expected to generate increased
returns in the event that short term interest rates rise above any
applicable LIBOR floors.
The Fund will not have a fixed distribution policy, but intends to make
monthly distributions based on the actual and expected returns on the
Portfolio. Given that the majority of the Portfolio will be invested in
Loans which are floating rate, returns may vary with changes in
interest rates. The Fund's initial distribution target is expected to
be $0.05417 per Class A Unit per month (U.S. $0.05417 in the case of
the Class U Units), representing an initial yield on the Unit issue
price of 6.5% per annum.
The Sub-Advisor is an indirect, wholly owned subsidiary of ING U.S.,
Inc. ("ING U.S."), an indirect majority-owned subsidiary of ING Groep
N.V., one of the world's largest financial services companies. The
Sub-Advisor is part of ING U.S. Investment Management, one of ING
U.S.'s businesses. The ING Senior Loan Group, the unit of the
Sub-Advisor that will manage the Portfolio, is located in Scottsdale,
Arizona (with an additional office in London, UK), and consists of a
team of 24 investment professionals and 24 support staff. The ING
Senior Loan Group currently manages over U.S. $17 billion in assets
that are substantially similar to the Loan investments that it will
manage for the Fund across 28 portfolios (not including the Fund).
The Units are being offered for sale by a syndicate of agents co-led by
BMO Capital Markets and CIBC and including RBC Capital Markets,
Scotiabank, TD Securities Inc., GMP Securities L.P., National Bank
Financial Inc., Canaccord Genuity Corp., Macquarie Private Wealth Inc.,
Raymond James Ltd., Desjardins Securities Inc., Mackie Research Capital
Corporation and Manulife Securities Incorporated.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in the United States, nor
shall there be any sale of the securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful. The securities of
the Fund have not been registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not
be offered or sold in the United States or to a U.S. person absent
registration under the 1933 Act or an applicable exemption from the
registration requirements of the 1933 Act and applicable state
This offering is only made by prospectus. The prospectus contains
important detailed information about the securities being offered.
Copies of the prospectus may be obtained from any of the
above-mentioned agents. Investors should read the prospectus before
making an investment decision.
SOURCE: Aston Hill Capital Markets Inc.
For further information:
For more information, please visit www.astonhill.ca or contact:
Vice President & CFO
Aston Hill Capital Markets Inc.
(416) 583-2300 or 1 (800) 513-3868