/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES./
TORONTO, Jan. 13 /CNW/ - Connor, Clark & Lunn Capital Markets Inc. (the
"Manager") is pleased to announce that the syndicate of agents for the
initial public offering of Australian Banc Capital Securities Trust
(the "Fund") has exercised its over-allotment option and acquired an
additional 790,010 Class A Units of the Fund. In total, the Fund
issued 14,790,010 Class A Units and 581,576 Class F Units (collectively
the "Units") at a price of $10.00 per Unit for total gross proceeds of
$153,715,860. The Class A Units are listed on the Toronto Stock
Exchange under the symbol AUZ.UN. Class F Units are not listed on a
stock exchange but may be converted into Class A Units on a weekly
The Fund's investment objectives are to (i) provide Unitholders with
quarterly, tax-advantaged distributions consisting primarily of returns
of capital and (ii) provide exposure to a portfolio consisting
primarily of Capital Securities issued by the Big Four Australian Banks
(Australia and New Zealand Banking Group, Commonwealth Bank of
Australia, National Australia Bank, and Westpac Banking Corporation).
Based on current estimates, the Fund's initial distribution target is
expected to be approximately $0.15 per Unit per quarter, consisting
primarily of returns of capital, representing an initial yield on the
Unit issue price of 6.0% per annum.
The Fund does not have a fixed distribution, but intends to make
quarterly distributions based on the actual and expected distributions
on the Capital Securities less the Fund's estimated expenses. Given
that a portion of the Portfolio will be invested in floating rate
Capital Securities, distributions will vary with changes in short term
interest rates in Australia.
Connor, Clark & Lunn Capital Markets Inc. is the Manager of the Fund.
The Manager also acts as the manager of Canadian Banc Capital
Securities Trust, North American Financials Capital Securities Trust
and HBanc Capital Securities Trust, and is part of the Connor, Clark &
Lunn Financial Group, which is responsible for the investment of
approximately $37 billion in financial assets as at September 30, 2010.
The Units were offered for sale by a syndicate of agents led by BMO
Capital Markets, HSBC Securities (Canada) Inc. and CIBC, and includes
RBC Capital Markets, National Bank Financial Inc., Scotia Capital Inc.,
TD Securities Inc., GMP Securities L.P., Macquarie Capital Markets
Canada Ltd., Raymond James Ltd., Canaccord Genuity Corp., Desjardins
Securities Inc., Dundee Securities Corporation, Mackie Research Capital
Corporation and Wellington West Capital Markets Inc.
SOURCE Australian Banc Capital Securities Trust
For further information:
please visit www.cclcapitalmarkets.com or contact:
Connor, Clark & Lunn Capital Markets Inc.
(416) 214-6182 or 1 (888) 276-2258