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TORONTO, March 22, 2017 /CNW Telbec/ - Redwood Asset Management Inc. ("Redwood"), the manager of June 2021 Investment Grade Bond Pool (the "Fund"), is pleased to announce that the Fund has completed its initial public offering of, in aggregate, 3,179,729 Class A Units and Class T Units (together, the "Units") at a price of $10.00 per Unit for gross proceeds of approximately $31,800,000. The Class T Units are listed on the Toronto Stock Exchange under the symbol "RBP.UN".
The Fund uses the Unit Traded Fund (UTF) structure which has been developed to accomplish two goals, namely (a) to enable the Fund to invest virtually all of the gross proceeds from the offering in its investment portfolio, and (b) to encourage the Fund's Class T Units to trade in the market at a price not less than 98.50% of their net asset value per unit throughout the life of the Fund.
The Fund's investment objectives are to:
return to holders of Units, including through Principal Distributions (as defined below), the original issue price of $10.00 per Unit on or before June 30, 2021; and
generate over the term of the Fund an average annual total return after fees and expenses of 3.10% for investors in the initial public offering who purchased Class A Units and 3.55% for investors in the initial public offering who purchased Class T Units,
by investing primarily in debt securities of Canadian and U.S. companies.
Portfolio securities generally will be held by the Fund until their maturities whereupon the principal amounts received by the Fund, net of repayment of borrowings used as leverage for the purchase of (or the acquisition of exposure to) such matured portfolio securities and less amounts used to fund the redemption or retraction of Units during the quarter ("Principal Distributions"), generally will be distributed to Unitholders in the form of returns of capital or as a retraction of Units.
Redwood, which is a wholly-owned subsidiary of Purpose Investments Inc., is the manager of the Fund and Fiera Capital Corporation is the portfolio adviser to the Fund.
The offering was made on a best efforts agency basis in each of the provinces and territories in Canada and the syndicate of agents for the offering was led by National Bank Financial Inc. and included BMO Capital Markets, CIBC, Scotiabank, GMP Securities L.P., Canaccord Genuity Corp., Desjardins Securities Inc., Industrial Alliance Securities Inc., Raymond James Ltd., Manulife Securities, Echelon Wealth Partners Inc. and Mackie Research Capital Corporation.
About Redwood Asset Management Inc.
Redwood Asset Management is a Toronto-based investment fund manager, focused on delivering unique investment solutions managed by boutique global investment managers to Canadian investors. Redwood Asset Management is a wholly owned subsidiary of Purpose Investments Inc., which has over $3 billion in assets under management. More information about Redwood's product offerings is available at www.redwoodasset.com.
SOURCE June 2021 Investment Grade Bond Pool
For further information: Dan Rubin, Vice President, Marketing, at 416-583-3853