MONTREAL, June 18 /CNW/ - O'Leary Funds Management LP is pleased to announce that the O'Leary Advantaged Tactical Global Corporate Bond Fund (the "Fund") has closed today its initial public offering (the "Offering") of 9,000,000 Units at a price of $12.00 per Unit for aggregate gross proceeds of $108 million. The Fund has granted the agents an over-allotment option exercisable in whole or in part for a period of 30 days following the closing of the Offering to acquire up to an additional 1,350,000 Units (the "Over-Allotment Option").
The Fund is an investment trust governed by the laws of the Province of Ontario. Each Unit consists of one transferable trust unit ("Trust Unit") and one Trust Unit purchase warrant ("Warrant"). The Units will separate into Trust Units and Warrants upon the earlier of the closing of the Over-Allotment Option and the 30th day following the closing of the Offering. Each Warrant entitles the holder to purchase one Trust Unit at a subscription price of $12.00 on or before 5:00 p.m. (Toronto time) on May 31, 2011 (the "Warrant Expiry Time"). Warrants not exercised by the Warrant Expiry Time will be void and of no value. Once separated, the Trust Units and the Warrants will trade on the Toronto Stock Exchange independently under the symbols: OCB.un and OCB.wt.
The Fund's investment objectives are to: (i) preserve capital; and (ii) provide holders of Trust Units with tax advantaged monthly distributions initially targeted to be $0.06 per Trust Unit ($0.72 per annum representing an annual yield of 6% based on the $12.00 per Unit issue price).
The Fund was created to provide investors with the opportunity to reallocate their Canadian fixed income investments from federal, provincial and municipal governments and investment vehicles that invest in such bonds and Canadian investment grade debt securities into a portfolio comprised of: (i) corporate fixed-rate debt; (ii) corporate floating-rate debt; (iii) corporate fixed-to-floating-rate debt; and (iv) convertible debt offered by global issuers that Stanton Asset Management Inc. ("Stanton") believes will provide:
- higher levels of income;
- attractive yield to maturity;
- more stability than a portfolio of global equity securities; and
- capital preservation in a period of rising interest rates and gradual
The Manager will retain Stanton to provide investment advisory services to the Fund. Stanton is a Canadian investment firm focused on global investment opportunities, and is also the manager of a variety of specialized funds. Stanton, together with Savtrev, Inc., will implement the investment strategy of the portfolio and will identify markets and investment opportunities.
On or before August 1, 2011, the Fund will become an open-end mutual fund, the Trust Units of the Fund will be delisted and the Trust Units will become redeemable at their net asset value per Trust Unit on a daily basis.
The syndicate of agents is co-led by CIBC World Markets Inc. and RBC Capital Markets and includes BMO Capital Markets, Scotia Capital Inc., Canaccord Genuity Corp., National Bank Financial Inc., HSBC Securities (Canada) Inc., Macquarie Capital Markets Canada Ltd., Raymond James Ltd., Wellington West Capital Markets Inc., Dundee Securities Corporation, GMP Securities L.P., Desjardins Securities Inc., Manulife Securities Incorporated, MGI Securities Inc. and Mackie Research Capital Corporation (collectively, the "Agents").
Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Fund. The forward-looking statements are not historical facts but reflect the Manager's 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. Although the Manager believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Manager undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
All capital terms noted herein but not defined are as per the prospectus dated May 28, 2010.
SOURCE O'Leary Funds Management LP
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