MONTREAL, July 14 /CNW/ - O'Leary Funds Management LP is pleased to announce that on July 14, 2010, the O'Leary Advantaged Tactical Global Corporate Bond Fund (the "Fund") successfully issued an additional 600,000 Trust Units and 600,000 Warrants pursuant to the exercise by the Agents of their Over-Allotment Option. Total gross proceeds are now $115,200,000. The Units issued at closing, together with the Units issued pursuant to the Over-Allotment Option, have separated into Trust Units and Warrants and are trading on the Toronto Stock Exchange independently under the symbols: OCB.un and OCB.wt, respectively.
The initial monthly cash distribution of $0.06 per Trust Unit is anticipated to be payable on August 13, 2010 to Unitholders of record on July 30, 2010. Additionally, 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 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 has retained 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 ADVANTAGED TACTICAL GLOBAL CORPORATE BOND FUND
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