TORONTO, Nov. 10, 2014 /CNW/ - Aston Hill Capital Markets Inc. ("Aston Hill") as Manager of North American Financials Capital Securities Trust (the "Fund") announced that at a special meeting of holders ("Unitholders") of the Fund's units ("Units") held today, Unitholders overwhelmingly approved the extension of the term of the Fund ("Extension"). The Extension will involve, among other things:
(i) the extension of the redemption date permitting Unitholders to hold their investment to November 30, 2019; and
(ii) the change of investment mandate to broaden the geographic scope and to expand the types of bank capital securities that qualify for inclusion in the portfolio to be securities that are designed to comply with the new Basel III regulatory requirements and to enable the Fund to hold the portfolio of investments directly following the termination of the forward purchase and sale agreement
Unitholders who do not wish to extend their investment have the option of redeeming their Units on December 1, 2014 by giving written notice no later than 5:00 p.m. (Toronto time) on November 19, 2014. Unitholders wishing to exercise such right should contact their broker or intermediary in order to arrange for submission of such notice.
In order for the Extension to become effective, holders of at least 748,000 Class A Units (being approximately 55% of the issued and outstanding Class A Units currently outstanding) must retain their Units and not redeem them on December 1, 2014. If fewer than 748,000 Class A Units would remain outstanding, the Fund will redeem all of the Units on December 1, 2014 on the same terms as originally contemplated. The Fund will issue a further press release following the November 19, 2014 redemption notice submission deadline.
Details of the Extension are outlined in the information circular dated October 9, 2014, prepared in connection with the special meeting which is available on www.sedar.com.
About North American Financials Capital Securities Trust
The Fund is an investment trust whose investment objectives, upon completion of the Extension, will be to (i) provide Unitholders with attractive quarterly cash distributions, and (ii) return to Unitholders the original issue price of the Units upon termination of the Fund. The Fund will seek to achieve its investment objectives through direct investment in, and active management of, a portfolio consisting primarily of subordinated capital instruments (excluding common equity) issued by Canadian and non-Canadian financial institutions that are designed to meet the regulatory requirements of the Fund's regulator, including Canadian Innovative Tier 1 Capital Securities issued by banks or entities related to banks. The Class A Units are listed for trading on the Toronto Stock Exchange under the symbol NAF.UN.
Aston Hill Capital Markets Inc. is a leading Canadian structured financial products investment firm focused on creating and managing high quality investment vehicles. The Manager is a subsidiary of Aston Hill Financial Inc. (TSX: AHF). Aston Hill Financial Inc. is a diversified asset management company with a suite of retail mutual funds, closed end funds, private equity funds, hedge funds and segregated institutional funds. Aston Hill Financial Inc. has offices in Calgary, Toronto and Halifax.
SOURCE: Aston Hill Capital Markets Inc.
For further information: Please contact your financial advisor, call Aston Hill's Sales and Marketing support line at 416-583-2300 (toll-free at 1-800-513-3868), or visit our website at www.astonhill.ca.