TORONTO, Oct. 23 /CNW/ - O'Leary Funds Management LP is pleased to announce that the O'Leary Founder's Series Income & Growth Fund (the "Fund") has completed today its initial public offering (the "Offering") of 12,500,000 Units at a price of $12.00 per Unit for aggregate gross proceeds of $150 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 1,875,000 Units.
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 $11.50 on or before 5:00 p.m. (Toronto time) on September 30, 2010 (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: OFS.un and OFS.wt.
The Fund has been created to invest in an actively managed portfolio comprised primarily of publicly-traded corporate bonds, preferred securities and dividend-paying common equity securities of mid and large-cap Canadian and global issuers, providing investors with both income and potential for capital appreciation. The Fund intends to invest in global bonds and preferred securities. These securities are largely institutionally-traded and denominated in foreign currencies. As a result, these securities are often difficult for most retail investors to purchase. The Fund will also invest in dividend-paying common equities, which Stanton Asset Management Inc. ("Stanton" or the "Portfolio Advisor") believes is an attractive strategy during a period of uncertain corporate earnings, to earn dividend income and remain positioned to participate in potential corporate earnings and capital appreciation. The Fund will also hedge foreign currency and adjust portfolio allocations across these different types of securities to seek to capitalize on developments in market conditions, in order to generate income and potential capital appreciation.
The Fund will permit investors to capitalize on the knowledge and capabilities of Stanton and Savtrev, Inc. ("O'Leary") who will work together to identify securities providing income and the potential for capital appreciation. The Portfolio Advisor and O'Leary believe that the Fund will provide investors with the opportunity to earn attractive income and total returns, while diversifying risk.
The Fund's investment objectives are:
(i) to maximize total return for holders of Trust Units
("Unitholders"), consisting of distributions, interest and
dividend income and capital appreciation; and
(ii) to provide Unitholders with monthly distributions initially
targeted to be $0.06 per Trust Unit ($0.72 per annum representing
an annual cash distribution of 6.0% based on the $12.00 per Unit
The syndicate of agents is co-led by CIBC World Markets Inc. and RBC Capital Markets and includes BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., Blackmont Capital Inc., GMP Securities L.P., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Desjardins Securities Inc., Dundee Securities Corporation, Manulife Securities Incorporated, MGI Securities Inc., Raymond James Ltd., Research Capital Corporation and Wellington West Capital Markets Inc.
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 O'Leary Funds Management LP'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 O'Leary Funds Management LP 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. O'Leary Funds Management LP 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 capitalized terms noted herein but not defined are as per the prospectus dated September 28, 2009.
SOURCE O'LEARY FOUNDER'S SERIES INCOME & GROWTH FUND
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