TORONTO, ON, Sept. 27, 2013 /CNW/ - Aston Hill Capital Markets Inc. (the "Manager") is pleased to announce that a final prospectus for ING High Income Floating Rate Fund (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 U Units ("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 Class A Unit and U.S. $10.00 per Class U Unit. Class U Units are designed for investors wishing to make their investment in U.S. dollars. The maximum amount of the offering is $200 million ($230 million if the over-allotment option is exercised in full) and is expected to close on or about October 22, 2013. The Toronto Stock Exchange has conditionally approved the listing of the Class A Units under the symbol IHL.UN. Class U Units will not be listed but may be converted into Class A Units on a weekly basis.
The Fund's investment objectives are to (i) provide monthly cash distributions; (ii) preserve capital; and (iii) generate increased returns in the event that short-term market interest rates rise, in each case, through an investment in a diversified portfolio (the "Portfolio") consisting primarily of first lien and second lien secured floating rate loans ("Loans") of non-investment grade North American borrowers, actively managed by ING Investment Management Co. LLC (the "Sub-Advisor"). The Portfolio will primarily consist of secured floating rate corporate loans that are expected to generate increased returns in the event that short term interest rates rise above any applicable LIBOR floors.
The Fund will not have a fixed distribution policy, but intends to make monthly distributions based on the actual and expected returns on the Portfolio. Given that the majority of the Portfolio will be invested in Loans which are floating rate, returns may vary with changes in interest rates. Based on current estimates and the assumptions set out in the final prospectus, the Fund's initial distribution target is expected to be $0.05417 per Unit per month (U.S. $0.05417 in the case of the Class U Units), representing an initial yield on the Unit issue price of 6.5% per annum.
The Sub-Advisor is currently an indirect, wholly owned subsidiary of ING U.S., Inc. ("ING U.S."), an indirect majority-owned subsidiary of ING Groep N.V. ("ING Group"), one of the world's largest financial services companies. The Sub-Advisor is part of ING U.S. Investment Management ("ING U.S. IM"), one of ING U.S.'s businesses. ING U.S. IM, as of June 30, 2013, had over 800 employees who provide investment advisory services to a wide range of customers, including mutual funds, insurance companies, pension plans and individuals. ING U.S. IM offers numerous investment strategies, including equity, fixed income and alternative investment strategies. As of June 30, 2013, ING U.S. IM had over $196 billion in total assets under management across all portfolios and strategies. The ING Senior Loan Group, a unit of the Sub-Advisor, will manage the Portfolio, is located in Scottsdale, Arizona (with an additional office in London, UK), and consists of a team of 24 investment professionals and 24 support staff. The ING Senior Loan Group currently manages over U.S. $17 billion in assets that are substantially similar to the Loan investments that it will manage for the Fund across 28 portfolios (not including the Fund).
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. Aston Hill Financial Inc. 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., Macquarie Private Wealth Inc., Raymond James Ltd., Desjardins Securities Inc., Mackie Research Capital Corporation and Manulife Securities Incorporated.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities of the Fund have not been registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States or to a U.S. person absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.
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.
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