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TORONTO, Jan. 31, 2014 /CNW/ - Aston Hill Capital Markets Inc. (the "Manager") is pleased to announce that a preliminary 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 Class A Units and Class F Units (together, the "Units") of the Fund. The Fund is a closed-end investment fund to be established under the laws of the Province of Ontario which proposes to offer Units at a price of $10.00 per Unit.
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 Capital Securities issued by investment grade European financial institutions, 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 preliminary 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$21.4 billion of assets under management and advice as at December 31, 2013 (together with its affiliates), comprised of US$3.1 billion of discretionary assets under management, US$5 billion of legacy assets under management and US$13.3 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. The company is also engaged in the administration of Argent Energy Trust. Aston Hill Financial has offices in Calgary, Toronto and Halifax and has over $7.8 billion in assets under management.
The Units are being offered for sale by a syndicate of agents led by BMO Capital Markets and including CIBC, RBC Capital Markets, Scotiabank, 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 Corporation, Mackie Research Capital Corporation and Manulife Securities Incorporated.
A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from any of the agents listed above. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
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:
please visit www.astonhill.ca or contact:
Vice President & CFO
Aston Hill Capital Markets Inc.
(416) 583-2300 or 1 (800) 513-3868