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TORONTO, Oct. 18, 2012 /CNW/ - Picton Mahoney Asset Management is pleased to announce that the Picton Mahoney Tactical Income Fund (the "Fund") has completed an initial public offering (the "Offering") of 13,000,000 Class A Units and 2,349,675 Class F Units (collectively, the "Units") of the Fund at a price of C$10.00 per unit for aggregate gross proceeds of $153,496,750. 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 518,377 Class A Units (the "Over-Allotment Option"). The Class A Units are listed and posted for trading on the Toronto Stock Exchange under the symbol "PMB.UN". The Class F Units will not be listed on a stock exchange but may be converted into Class A Units on a weekly basis for liquidity purposes.
The Fund has been created to obtain exposure to a diversified portfolio of income producing securities (the "Portfolio") which will be actively managed and will primarily consist of long and short positions in high-yield and investment grade bonds and, to a more limited extent, government bonds, convertible bonds, preferred shares and dividend paying equities, with a focus on North American issuers. The investment objectives of the Fund are:
(i) to provide holders of Units ("Unitholders") with sustainable tax-advantaged monthly distributions;
(ii) to preserve capital and mitigate risk with less volatility and less correlation to high-yield and equity markets; and
(iii) to maximize total return to Unitholders through distributions and capital appreciation.
The distributions are initially targeted to be 5.0% per annum on the subscription price of C$10.00 per Unit (C$0.04167 per Unit per month or C$0.50 per annum). Commencing in 2013, the Fund will announce, at least annually, the expected distribution amount for the following 12 months.
Picton Mahoney Asset Management is an investment manager with approximately $6 billion of assets under management as of June 30, 2012. Led by David Picton, Picton Mahoney's 25 member investment team has expertise in Canadian, U.S. and International financial markets. Philip Mesman is responsible for Picton Mahoney's bond and income strategies and is the lead portfolio manager of the Portfolio.
The syndicate of agents for this offering was led by RBC Capital Markets and CIBC, and included TD Securities Inc., BMO, Macquarie Private Wealth Inc., National Bank Financial Inc., Scotia Capital Inc., GMP Securities L.P., Canaccord Genuity Corp. and Raymond James Ltd.
Certain statements included in this news release constitute forward-looking statements. The forward-looking statements are not historical facts but reflect 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 and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Picton Mahoney Asset Management and the Fund undertake no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law. Investment funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There is no assurance that the Fund will be able to achieve its distribution and capital preservation objectives or that the full amount of a unitholders investment in the Fund will be returned.
SOURCE: Picton Mahoney Asset Management
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