TORONTO, Jan. 7 /CNW/ - Mulvihill Capital Management Inc. ("MCM" or the "Manager") is pleased to announce that Canadian Utilities & Telecom Income Fund (the "Fund") has completed an issuance of an additional 160,000 units ("Units") pursuant to the exercise of the over-allotment option granted to the Fund's agents in its recently completed initial public offering. Altogether, the Fund has raised gross proceeds of $60.7 million, including the proceeds from the over-allotment option. The Units trade on the Toronto Stock Exchange under the symbol UTE.UN.

The Fund's investment objectives are (i) to pay holders of its Units ("Unitholders") monthly distributions in an amount targeted to be 7.0% per annum on the net asset value ("NAV") of the Fund; and (ii) to preserve and enhance the Fund's NAV while reducing portfolio volatility.

The Fund will seek to achieve its investment objectives by investing in a portfolio consisting principally of equity securities of large capitalization (over $1 billion) utility and, to a lesser degree, telecommunications issuers listed on the Toronto Stock Exchange ("TSX"). Issuers selected for inclusion in the portfolio must have a minimum distribution yield of 2.0% per annum.

MCM may also invest up to 20% of the Fund's NAV in equity securities of other utilities and telecommunications issuers listed on a North American stock exchange, subject to a minimum market capitalization of $250 million and a minimum distribution yield of 2.0% per annum. MCM intends generally to include between 15 and 20 issuers in the Fund's portfolio.

MCM believes, based on its research and analysis, that a large capitalization portfolio of securities in the utilities and telecommunications sectors is an attractive long-term investment due to the more predictable cash flows generated from long-term tangible assets and high barriers to entry, combined with generally high and historically growing dividends from issuers in these two sectors which are generally viewed as being defensive investments.

The following table lists the current universe of issuers in which the Fund may invest (the "Portfolio Universe"):

BCE Inc.
TransCanada Corporation
Enbridge Inc.
Rogers Communications Inc.
TELUS Corporation
Shaw Communications Inc.
Canadian Utilities Limited
Fortis Inc.
        TransAlta Corporation
Inter Pipeline Fund
Emera Incorporated
Pembina Pipeline Corporation
Bell Aliant Regional Communications Income Fund
Keyera Facilities Income Fund
Brookfield Renewable Power Fund
      Provident Energy Trust
Just Energy Income Fund
Manitoba Telecom Services Inc.
Capital Power Corporation
Fort Chicago Energy Partners L.P.
AltaGas Ltd.
Northland Power Income Fund
Capital Power Income L.P.

The syndicate of agents for the offering was co-led by RBC Capital Markets and CIBC World Markets Inc. and included BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Raymond James Ltd., Canaccord Genuity Corp., Dundee Securities Corporation, Mackie Research Capital Corporation and Manulife Securities Incorporated.

For further information, please contact our investor relations line at 416.681.3966, toll free at 1.800.725.7172 or visit

SOURCE Canadian Utilities

For further information:

John Mulvihill, President and CEO
David Roode, President, Fund Services
Aaron Ho, Vice-President, Finance
          Mulvihill Structured Products
121 King Street West
Suite 2600
Toronto, Ontario, M5H 3T9
416.681.3966; 1.800.725.7172

Organization Profile

Canadian Utilities & Telecom Income Fund

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890