/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA./
TORONTO, May 6, 2014 /CNW/ - Propel Capital Corporation, the manager of Senior Secured Floating Rate Loan Fund (TSX: FRL.UN) (the "Fund"), is pleased to announce that the Fund has filed a final prospectus for an offering of warrants of the Fund (the "Warrants") to unitholders of Class A units of the Fund (the "Unitholders"). Each Unitholder of record on May 15, 2014 will receive one Warrant for each Class A unit of the Fund (a "Class A Unit").
Two whole Warrants will entitle the Unitholder to purchase a Class A Unit upon payment of the subscription price of $9.84 which is the sum of the most recently calculated net asset value per Class A Unit prior to the date of filing the final short form prospectus plus the estimated per Class A Unit fees and expenses of the offering of the Fund. Warrants may be exercised on a monthly basis on the first business day of each month commencing on June 2, 2014 and on October 30, 2014. Warrants not exercised by 5:00 p.m. (Toronto time) on October 30, 2014 will be void and have no value.
The Warrants distributed under this prospectus have been conditionally approved for listing on the Toronto Stock Exchange under the symbol FRL.WT. Warrants will not be eligible to receive distributions provided, however, that if Class A Units are issued on or before an applicable record date, Class A Units received upon exercise of the Warrants will be eligible to receive distributions from the Fund.
Warrants will be distributed to client accounts by brokers after the record date. The Fund will pay an exercise fee of $0.15 per Class A Unit at the time the Warrant is exercised, payable to the investment advisor of the CDS participant whose client is exercising the Warrant.
The Warrants are not qualified for distribution in the United States of America. A copy of the final prospectus has been filed on SEDAR at www.sedar.com under the Fund's profile.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.
SOURCE: Senior Secured Floating Rate Loan Fund
For further information: please call Krista Matheson, Senior Vice President, Propel Capital Corporation at 416-572-2341 or visit www.propelcapital.ca