TORONTO, Jan. 13, 2015 /CNW/ - Further to its press release dated December 12, 2014, First Asset Active Credit Fund (formerly, First Asset Yield Opportunity Trust) (the "Fund") (TSX: FAY.UN and FAY.U) announces that it will merge with First Asset Active Credit ETF (the "ETF") prior to the open of business on January 19, 2015 (the "Effective Date"). The newly-established ETF has filed a final prospectus dated January 12, 2015 with the securities regulatory authorities of all of the provinces and territories of Canada.
In connection with the Merger:
- Each Series A Unit of the Fund will be exchanged, on a tax-deferred basis, for Common Units of the ETF (TSX: FAO) at an exchange ratio calculated by dividing the net asset value ("NAV") per Series A Unit of the Fund, as determined at the close of business on Friday, January 16, 2015 by $10, representing the issue price of each Common Unit of the ETF. By way of illustration, if the NAV per Series A Unit of the Fund on January 16, 2015 is $12.00 per Series A Unit, then upon the Merger each Series A Unit of the Fund will be exchanged for 1.2 Common Units of the ETF (being $12.00 divided by $10.00); and
- Each Series B Unit of the Fund will be exchanged, on a tax-deferred basis, for US$ Common Units of the ETF (TSX: FAO.U) at an exchange ratio calculated by dividing the NAV per Series B Unit of the Fund, as determined at the close of business on Friday, January 16, 2015 by $10, representing the issue price of each US$ Common Unit of the ETF. By way of illustration, if the NAV per Series B Unit of the Fund on January 16, 2015 is $7.00 per Series B Unit, then upon the Merger each Series B Unit of the Fund will be exchanged for 0.7 US$ Common Units of the ETF (being $7.00 divided by $10.00).
- On the exchange of units, the Unitholder will receive a number of whole converted Units. No fractional Units will be issued upon the exchange. Any remaining fraction of an exchanged Unit will be redeemed at its net asset value.
The Common Units and the US$ Common Units of the ETF will commence trading on the Toronto Stock Exchange on Monday, January 19, 2015.
Unitholders of the Fund are not required to take any action in order to be recognized as unitholders of the ETF.
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This communication is intended for informational purposes only. This offering is made only by prospectus. The prospectus contains important detailed information about the ETF and its units. A copy of the prospectus may be obtained from your investment advisor, First Asset or at www.sedar.com. Investors should read the prospectus before making an investment decision. Commissions, trailing fees, management fees and expenses all may be associated with investments in the ETF. The ETF is managed by First Asset Investment Management Inc.
Not for dissemination to U.S. Newswire services or for dissemination in the United States of America.
SOURCE First Asset
For further information: please call Investor Relations, First Asset at 416-642-1289 or 18776421289 or visit www.firstasset.com.