TORONTO, Dec. 11, 2012 /CNW/ - First National Mortgage Investment Fund
(the "Fund") is pleased to announce that First National Financial Corporation, an
affiliate of First National Asset Management Inc., a promoter of the
Fund, has agreed to acquire by way of private placement, concurrently
with the closing of the initial public offering of the units of the
Fund ("Units") (the "Offering"), Class H Units of the Fund at a price of $10.00 per Class H Unit in
an amount that is equal to the lesser of: (i) 1 million Class H Units,
and (ii) that number of Class H Units as would be equal to 20% of the
number of Units issued pursuant to the Offering. The Class H Units
will be non-voting, will not be listed on a stock exchange and will be
convertible into the Units on a monthly basis. The private placement
remains subject to the approval of the Toronto Stock Exchange ("TSX").
The Offering is scheduled to close on December 19, 2012. The TSX has
conditionally approved the listing of the Units under the symbol
FNM.UN, subject to the fulfillment of TSX requirements.
The Fund has been created to obtain economic exposure to a diversified
portfolio of mortgages originated by First National Financial LP, a
wholly owned subsidiary of First National Financial Corporation.
The Fund's investment objectives are to:
provide holders of units with tax-advantaged monthly cash distributions;
The distributions are initially targeted to be 6.0% per annum on the
subscription price of $10.00 per unit ($0.05 per unit per month or
$0.60 per annum). Commencing in December 2013, the Fund will announce,
at least annually, the expected distribution amount for the following
Stone Asset Management Limited will act as manager and portfolio manager
of the Fund.
First National Financial Corporation is a Canadian-based originator,
underwriter and servicer of predominantly prime residential
(single-family and multi-unit) and commercial mortgages.
The syndicate of agents for this offering is being co-led by RBC Capital
Markets, CIBC and TD Securities Inc., and includes BMO Capital Markets,
National Bank Financial Inc., Scotiabank, Canaccord Genuity Corp., GMP
Securities L.P., Raymond James Ltd., Desjardins Securities Inc., Dundee
Securities Ltd. and Macquarie Private Wealth Inc.
About First National:
First National Financial Corporation (TSX: FN) is the parent company of
First National Financial LP, a Canadian-based originator, underwriter
and servicer of predominantly prime residential (single-family and
multi-unit) and commercial mortgages. With over $63 billion in
mortgages under administration, First National Financial Corporation
believes it is the largest lender of single-family residential
mortgages in Canada outside the five largest chartered banks and one of
the largest multi-unit and commercial mortgage lenders in Canada. For
more information, please visit www.firstnational.ca.
About Stone Asset Management Limited:
Stone Asset Management Limited manages a family of open-ended mutual
funds, a series of flow-through limited partnerships and a TSX-listed
investment fund. SAM specializes in structuring and managing high
quality investment products and currently has approximately $685
million in assets under management.
SOURCE: First National Mortgage Investment Fund
For further information:
please contact Robert Inglis, First National Financial Corporation, at 416-593-1100 or visit www.firstnational.ca.