U.S. Banks Income & Growth Fund Announces Exchange Ratios for Exchange Option

TORONTO, Dec. 8, 2015 /CNW Telbec/ - Purpose Investments Inc., on behalf of the U.S. Banks Income & Growth Fund (the "Fund"), is pleased to announce the exchange ratios for the exchange offer by the Fund (the "Exchange Option") being made under the final prospectus of the Fund dated November 25, 2015.

The Fund's investment objectives are to:
(i)  maximize total return through capital appreciation and distributions; and
(ii) provide unitholders with monthly distribution.

To achieve its investment objectives, the Fund will invest in a portfolio (the "Portfolio") comprised primarily of equity securities from a universe of financial sector securities listed in the U.S., including but not limited to commercial banks and industrial banks, and financial services companies such as insurance companies and financial holding companies. At least 50% of the foreign currency exposure within the Portfolio will be hedged back to the Canadian dollar at all times.

The initial target distribution yield for the fund is 5.0% per annum based on the original subscription price (or $0.0417 per unit per month or $0.50 per unit per annum).

The number of units issuable for each class of security of an Exchange Eligible Issuer (as listed below) (the "Exchange Ratio") has been determined by dividing the weighted average trading price of such security during the period of five consecutive trading days ending on December 8, 2015 (the "Pricing Period"), as adjusted to reflect distributions declared by any Exchange Eligible Issuer that will not be received by the Fund, by $10.00. The Exchange Ratio for any such securities that do not trade in Canadian dollars have been determined by converting the weighted average trading price on the applicable exchange of such securities into Canadian dollars based on the Bank of Canada noon rate of exchange on the last day of the Pricing Period. Holders of securities of Exchange Eligible Issuers who deposited such securities pursuant to the Exchange Option will continue to be holders of record up to but not including the date of the closing of the offering of units and will be entitled to receive distributions in respect of such securities of Exchange Eligible Issuers that are declared up to but not including such date. Each Exchange Ratio has been rounded down to five decimal places.

The table below sets out the Exchange Eligible Issuers, the securities of which may be accepted by the Fund pursuant to the Exchange Option, including the name of the Exchange Eligible Issuer, its ticker symbol, its CUSIP number, its ISIN, its volume weighted average trading price during the Pricing Period and the Exchange Ratio.

 

NAME

TICKER SYMBOL

CUSIP

ISIN

VWAP ($)

EXCHANGE RATIO

Aflac Inc

AFL US

001055102

US0010551028

63.4864

8.62970

Bank of America Corp

BAC US

060505104

US0605051046

17.5502

2.38559

Bank of New York Mellon Corp

BK US

064058100

US0640581007

43.4942

5.91216

BB&T Corp

BBT US

054937107

US0549371070

38.4716

5.22944

Citigroup Inc

C US

172967424

US1729674242

54.2439

7.37337

Citizens Financial Group Inc

CFG US

174610105

US1746101054

26.6131

3.61751

CNA Financial Corp

CNA US

126117100

US1261171003

36.5879

4.97339

Comerica Inc

CMA US

200340107

US2003401070

44.8342

6.06576

Fifth Third Bancorp

FITB US

316773100

US3167731005

20.6230

2.80328

KeyCorp

KEY US

493267108

US4932671088

13.1807

1.79165

MetLife Inc

MET US

59156R108

US59156R1086

50.3247

6.84063

Morgan Stanley

MS US

617446448

US6174464486

34.7672

4.72590

Regions Financial Corp

RF US

7591EP100

US7591EP1005

10.0121

1.35278

Unum Group

UNM US

91529Y106

US91529Y1064

36.4033

4.94830

Bank of Montreal

BMO CN

063671101

CA0636711016

78.6412

7.86412

Bank of Nova Scotia

BNS CN

064149107

CA0641491075

58.8801

5.88801

Canadian Imperial Bank of Commerce

CM CN

136069101

CA1360691010

97.1367

9.71367

National Bank of Canada

NA CN

633067103

CA6330671034

43.2482

4.32482

Royal Bank of Canada

RY CN

780087102

CA7800871021

75.8800

7.58800

Toronto-Dominion Bank

TD CN

891160509

CA8911605092

54.2437

5.42437

Great-West Lifeco Inc

GWO CN

39138C106

CA39138C1068

35.6550

3.56550

Industrial Alliance Insurance & Financial Services Inc

IAG CN

455871103

CA4558711038

45.5151

4.55151

Manulife Financial Corp

MFC CN

56501R106

CA56501R1064

22.0250

2.20250

Sun Life Financial Inc

SLF CN

866796105

CA8667961053

44.0361

4.40361

 

The syndicate of agents is being led by National Bank Financial Inc. and includes BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., GMP Securities L.P., Canaccord Genuity Corp., Manulife Securities Incorporated, Desjardins Securities Inc., Dundee Securities Ltd., Global Securities Corporation, Industrial Alliance Securities Inc., Mackie Research Capital Corporation and PI Financial Corp.

This offering is made by prospectus. The prospectus contains important information about the securities being offered. Copies of the prospectus may be obtained from your IIROC registered financial advisor using the contact information for such advisor. Investors should read the prospectus before making an investment decision.

 

SOURCE U.S. Banks Income & Growth Fund

For further information: For further information, please visit our website at www.purposeinvest.com or contact Dan Rubin Vice President, Marketing, at (416) 583-3853 or toll-free at Info@purposeinvest.com


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