TORONTO, Aug. 29, 2013 /CNW/ - Aston Hill Capital Markets Inc. (the
"Manager") is pleased to announce that a preliminary prospectus for ING
High Income Floating Rate Fund (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 U Units ("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 per Class A
Unit and U.S. $10.00 per Class U Unit. Class U Units are designed for
investors wishing to make their investment in U.S. dollars.
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 primarily consist 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. Based on current estimates and the assumptions set out
in the preliminary prospectus, the Fund's initial distribution target
is expected to be $0.05417 per 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 currently an indirect, wholly-owned subsidiary of ING
U.S., Inc. ("ING U.S."), an indirect majority-owned subsidiary of ING
Groep N.V. ("ING Group"), one of the world's largest financial services
companies. The Sub-Advisor is a direct, wholly-owned subsidiary of ING
Investment Management LLC, which oversees the investment management
business of ING U.S., the primary U.S. holding company for ING Group.
ING Investment Management LLC, as of June 30, 2013, had over 800
employees who provide investment advisory services to a wide range of
customers, including mutual funds, insurance companies, pension plans
and individuals. ING Investment Management LLC offers numerous
investment strategies, including equity, fixed income and alternative
investment strategies. As of June 30, 2013, ING Investment Management
LLC had over $196 billion in total assets under management across all
portfolios and strategies. The ING Senior Loan Group, a unit of the Sub-Advisor, 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).
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. Aston Hill Financial Inc. 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., 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
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.
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