Canadian Banc Capital Securities Trust Files Preliminary Prospectus

    TORONTO, April 17 /CNW/ - Connor, Clark & Lunn Capital Markets Inc. (the
"Manager") is pleased to announce that a preliminary prospectus for Canadian
Banc Capital Securities Trust ("Canadian Banc" or the "Fund") has been filed
with the securities regulatory authorities of all the Canadian provinces and
territories for an initial public offering of Class A Units and Class F Units
(the "Units") of the Fund.
    Canadian Banc's investment objectives are to (i) provide Unitholders with
attractive tax-advantaged quarterly cash distributions, and (ii) return to
Unitholders at least the original issue price of the Units upon termination of
the Fund on June 30, 2014. Distributions are initially targeted to be $1.625
per annum per Unit consisting primarily of returns of capital, representing a
yield on the Unit issue price of 6.5% per annum.
    The Fund will seek to achieve its investment objectives through exposure
to an actively managed portfolio consisting primarily of Innovative Tier 1
Capital Securities of the six largest Canadian banks, including such issues as
TD Capital Trust IV Notes (TD CaTS IV), Scotiabank Capital Trust Securities
(Scotia BaTS II) and BMO Capital Trust II Notes (BoATS VI). The Portfolio
Manager believes that an attractive opportunity currently exists to invest in
Innovative Tier 1 Capital Securities for the following reasons:

    -   Canadian banks have been recognized as well capitalized and
        conservatively run financial institutions, and were recently ranked
        No. 1 globally in the "Soundness of Banks" category by the World
        Economic Forum in its Global Competitiveness Report 2008-2009. The
        soundness of Canadian banks relative to their international
        counterparts has been particularly highlighted during the recent
        financial crisis, during which Canadian banks have maintained
        Investment Grade credit ratings while many US and European banks have
        been forced into restructuring, bankruptcy or partial or full
        government nationalization.
    -   The recent volume of issuance by Canadian banks of preferred shares
        and common shares to strengthen their balance sheets has increased
        their regulatory capital levels to levels approaching historical
        highs, and has further enhanced the downside protection of Innovative
        Tier 1 Capital Securities.
    -   Innovative Tier 1 Capital Securities currently provide high yields on
        an absolute basis and relative to Government Bonds and to equities.
    -   Current spreads of Innovative Tier 1 Capital Securities over
        Government Bonds provide the opportunity for capital gains if spreads
        return to their long-term averages.
    -   Innovative Tier 1 Capital Securities represent a class of securities
        generally otherwise available only to institutional investors on

    Securities in the Indicative Portfolio have a weighted average Investment
Grade credit rating of A, a weighted average yield to the first date upon
which the securities may be called at par of 8.32%, a current yield of 7.94%
and an average term to call (to the first date upon which the securities may
be called at par) of approximately 8.61 years.
    Connor, Clark & Lunn Investment Management Ltd. will act as Portfolio
Manager to the Fund. The Portfolio Manager, part of the Connor, Clark & Lunn
Financial Group, was established in March 1982 and has offices in Vancouver
and Toronto. The Portfolio Manager managed assets worth approximately $16.7
billion as at December 31, 2008, approximately $6.9 billion of which is in
fixed income securities.
    The Units are being offered for sale by a syndicate of agents led by BMO
Nesbitt Burns Inc., CIBC World Markets Inc. and RBC Dominion Securities Inc.
and includes Scotia Capital Inc., National Bank Financial Inc., TD Securities
Inc., HSBC Securities (Canada) Inc., Richardson Partners Financial Limited,
Dundee Securities Corporation, Wellington West Capital Markets Inc., Blackmont
Capital Inc., Canaccord Capital Corporation, Desjardins Securities Inc., GMP
Securities L.P., Manulife Securities Incorporated, Raymond James Ltd., and
Research Capital Corporation.
    A preliminary prospectus relating to these securities has been filed with
securities commissions or similar authorities in each of the provinces and
territories of Canada but has not yet become final for the purpose of
distribution to the public. This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be any sale or
any acceptance of an offer to buy these securities in any province or
territory of Canada prior to the time a receipt for the final prospectus or
other authorization is obtained from the securities commission or similar
authority in such province or territory.

For further information:

For further information: please visit or
contact: Darren Cabral, Vice President, Connor, Clark & Lunn Capital Markets
Inc., (416) 214-6182 or 1 (888) 276-2258,

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