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TORONTO, Feb. 6, 2013 /CNW/ - Scotia Managed Companies Administration Inc. is pleased to announce that Moneda LatAm Fixed Income Fund (the "Fund") has completed a follow-on public offering (the "Offering") of 5,700,000 Class A Units and 529,055 Class U Units (collectively, the "Units") of the Fund at a price of Cdn.$10.61 per Class A Unit and U.S.$10.58 per Class U Unit for gross proceeds of Cdn.$60,477,000 and U.S.$5,597,401.90 respectively. The Fund has granted the Agents (as defined below) an over-allotment option to offer up an additional 855,000 Class A Units on the same terms exercisable in whole or in part at any time during the next thirty days.
The Class A Units of the Fund are listed and posted for trading under the symbol "MLF.UN". Class U Units will not be listed but may be converted into Class A Units on a weekly basis for liquidity purposes. The Class U Units are designed for investors wishing to make their investment in U.S. dollars.
The Fund is a closed-end investment fund established as a trust under the laws of the Province of Ontario. The Fund's investment objectives are to: (i) preserve and enhance the net asset value of the Fund; and (ii) provide Unitholders with quarterly tax-advantaged distributions consisting primarily of returns of capital, in each case through exposure by virtue of a forward agreement to a diversified portfolio ("Portfolio") consisting primarily of U.S. dollar-denominated high yield fixed income securities of companies in Latin America ("LatAm").
The Portfolio is actively managed by Moneda International Inc. (''Moneda'') who seeks both income and capital appreciation for the Portfolio. Moneda's primary investment strategy is to perform bottom-up company analysis supplemented with top-down macroeconomic analysis of Latin American countries and their industry sectors. Using its bottom-up analysis, Moneda selects the companies it considers to be the most attractive risk-adjusted investments in the LatAm region. Based on its macroeconomic views, Moneda makes investment decisions and diversifies the Portfolio between countries and industries that it believes will outperform across LatAm.
The Fund intends to make quarterly cash distributions to Unitholders. Based on current estimates, and the assumptions set out in the final prospectus of the Fund relating to the Offering dated January 28, 2013, the Fund's current quarterly distribution target is Cdn.$0.1875 per Class A Unit and U.S.$0.1875 per Class U Unit (Cdn.$0.75 and U.S.$0.75 per annum, respectively) representing an annual yield of 7.07% on the issue price of the Class A Units and 7.09% on the issue price of the Class U units (7.50% on the initial public offering issue price of $10.00). It is expected that the quarterly distributions received by Unitholders will be characterized primarily as returns of capital and capital gains for tax purposes. Since the commencement of operations of the Fund on June 19, 2012, the Fund has paid aggregate cash distributions of $0.39447 per Class A Unit and US$0.39447 per Class U Unit.
The syndicate of agents for the Offering was co-led by Scotiabank, CIBC and RBC Capital Markets and included BMO Capital Markets, National Bank Financial Inc., TD Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., Macquarie Private Wealth Inc., Raymond James Ltd., Burgeonvest Bick Securities Limited, Dundee Securities Ltd. and Manulife Securities Incorporated (the "Agents").
Certain statements included in this news release constitute forward-looking statements. The forward-looking statements are not historical facts but reflect current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Scotia Managed Companies Administration Inc. undertakes no obligation to update publicly or otherwise revise any forward looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law. Investment funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There is no assurance that the Fund will be able to achieve its distribution and capital preservation objectives or that the full amount of a unitholder's investment in the Fund will be returned. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.
SOURCE: Moneda LatAm Fixed Income Fund
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