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TORONTO, May 30, 2014 /CNW/ - Aston Hill Capital Markets Inc. (the "Manager") is pleased to announce that a final prospectus for Euro Banc Capital Securities Trust (the "Fund") has been filed and receipted by the securities regulatory authorities of all the Canadian provinces and territories for an initial public offering of units (the "Units") of the Fund. The Fund is a closed-end investment fund established under the laws of the Province of Ontario which proposes to offer Units at a price of $10.00 per Unit. The maximum amount of the offering is $125 million ($143.75 million if the over-allotment is exercised in full) and is expected to close on or about June 24, 2014. The Toronto Stock Exchange has conditionally approved the listing of the Units under the symbol EBT.UN.
The Fund's investment objectives are to (i) provide quarterly cash distributions; and (ii) preserve capital, in each case through investment in a portfolio consisting primarily of investment grade and non-investment grade Capital Securities issued by European financial institutions that have an investment grade issuer rating, actively managed by Cairn Capital Limited. Capital Securities are subordinated capital instruments (excluding common equity) issued by financial institutions that are designed to meet the regulatory capital requirements of the issuer's regulator.
The Fund will not have a fixed distribution policy, but intends to make quarterly distributions based on the actual and expected returns on the portfolio. Based on current estimates and the assumptions set out in the final prospectus, the Fund's initial distribution target is expected to be $0.15 per Unit per quarter, representing an initial yield on the Unit issue price of 6.0% per annum.
Cairn Capital Limited, a specialist credit asset management and advisory business established in 2004 with US$21.6 billion of assets under management and advice as at March 31, 2014 (together with its affiliates), comprised of US$2.6 billion of discretionary assets under management, US$4.7 billion of legacy assets under management and US$14.3 billion of assets under long term advice, will act as the investment manager of the Fund in connection with the selection, purchase and sale of Capital Securities.
Aston Hill Capital Markets Inc. will act as Manager of the Fund. The Manager is a leading provider of investment products having raised over $2.5 billion in assets. The Manager is part of Aston Hill Financial Inc., a diversified asset management company with a suite of retail mutual funds, closed end funds, private equity funds, hedge funds and segregated institutional funds. Aston Hill Financial has offices in Calgary, Toronto and Halifax and has approximately $7.4 billion in assets under management.
The Units are being offered for sale by a syndicate of agents led by BMO Capital Markets and Scotiabank, and including CIBC, RBC Capital Markets, TD Securities Inc., GMP Securities L.P., National Bank Financial Inc., Canaccord Genuity Corp., Raymond James Ltd., Burgoenvest Bick Securities Limited, Desjardins Securities Inc., Dundee Securities Ltd., Mackie Research Capital Corporation and Manulife Securities Incorporated.
This offering is only made by prospectus. The prospectus contains important detailed information about the securities being offered. Copies of the prospectus may be obtained from any of the above-mentioned agents. Investors should read the prospectus before making an investment decision.
Commissions, management fees and expenses all may be associated with investment funds. Please read the Fund's publicly filed documents which are available from SEDAR at www.sedar.com. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
SOURCE: Aston Hill Capital Markets Inc.
For further information: For more information, please visit www.astonhill.ca or contact: Darren Cabral, Vice President & CFO, Aston Hill Capital Markets Inc., (416) 583-2300 or 1 (800) 513-3868, [email protected]