MONTREAL, Jan. 17, 2012 /CNW/ - O'Leary Funds Management LP (the "Manager") is pleased to announce that the O'Leary Canadian Diversified Income Fund (the "Fund") has closed today its initial public offering (the "Offering") of 2,000,000 units at a price of $12.00 per unit (the "Units") for aggregate gross proceeds of $24 million. The Fund has granted the agents an overallotment 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 300,000 units.
The Fund was created to invest in investment grade and high yield corporate bonds and dividend-paying equity securities primarily of large and mid-cap Canadian issuers, and to a lesser extent of dividend-paying equity securities of large-cap U.S. issuers.
The Fund's investment objectives are: (i) to provide holders of Units with monthly distributions; and (ii) to preserve capital.
The Fund is an investment trust governed by the laws of the Province of Ontario. The initial monthly distributions are targeted to be $0.06 per Unit ($0.72 per annum representing an annual cash distribution of 6.0% based on the $12.00 per Unit issue price).
The Manager has retained Stanton Asset Management Inc. (the "Portfolio Advisor") to provide investment advisory services to the Fund. The Portfolio Advisor is a Canadian investment firm focused on global investment opportunities, and is also the manager of a variety of specialized funds.
The syndicate of agents was co-led by CIBC and RBC Capital Markets, and included National Bank Financial Inc., BMO Capital Markets, Scotia Capital Inc., TD Securities Inc., Macquarie Private Wealth Inc., Raymond James Ltd., Canaccord Genuity Corp., GMP Securities L.P., Desjardins Securities Inc., Dundee Securities Ltd., Mackie Research Capital Corporation, Manulife Securities Incorporated and MGI Securities Inc. (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.
This Offering is only made by a prospectus dated December 21, 2011. The prospectus contains important information relating to these securities. Copies of the prospectus may be obtained from any of the Agents. Investors should read the prospectus before making an investment decision.
All capital terms noted herein but not defined are as per the prospectus dated December 21, 2011.
For further information:
for media inquiries or additional information: please contact O'Leary Funds at [email protected] or at 1-877-849-2004 x226.