TORONTO and MONTREAL, June 23, 2015 /CNW Telbec/ - The Canadian Preferred Share Trust (the "Fund") announces that it has filed a final prospectus dated June 22, 2015 with the securities regulatory authorities of all of the Canadian provinces and territories for an initial public offering (the "Offering") of Class A Units and Class F Units (collectively, the "Units") of the Fund at a price of $10.00 per Unit. The Class F Units are designated for fee based and/or institutional accounts and will not be listed on a stock exchange but will be convertible into Class A Units on a weekly basis. The Fund is managed by Fiera Capital Corporation ("Fiera Capital").
The Offering has a maximum size of $250 million ($287.5 million if the over-allotment option is exercised in full) and is expected to close on or about July 2, 2015. The Toronto Stock Exchange has conditionally approved the listing of the Class A Units under the symbol PFT.UN.
Prospective purchasers investing in the Fund have the option of paying for Units in cash or by exchanging preferred shares of issuers and securities of exchange traded funds listed in the final prospectus. Prospective purchasers under the exchange option are required to deposit their exchange eligible securities prior to 5:00 p.m. (Toronto time) on June 24, 2015 in the manner described in the final prospectus. The Fund will issue a press release as soon as practicable after the close of business on June 24, 2015 announcing for each of the exchange eligible securities, among other things, the exchange ratio.
The Fund's investment objectives are to provide holders of Units with monthly cash distributions, preserve capital and provide the opportunity for capital appreciation, and reduce the risk of rising interest rates by managing portfolio duration. The Fund has been created to invest in an actively managed portfolio comprised primarily of Canadian preferred shares. The Fund's distributions are initially targeted to be $0.0333 per Unit per month ($0.40 per annum) to yield 4.0% per annum on the subscription price per Unit.
Fiera Capital is the manager, portfolio manager and promoter of the Fund. Fiera Capital is responsible for creating, structuring, managing and promoting the Fund and will also implement the Fund's investment strategies.
The syndicate of agents for this offering is being co-led by RBC Capital Markets and CIBC, and includes Scotiabank, National Bank Financial Inc., BMO Capital Markets, TD Securities Inc., GMP Securities L.P., Raymond James Ltd., Desjardins Securities Inc., Canaccord Genuity Corp., Dundee Securities Ltd. and Manulife Securities Incorporated (collectively, the "Agents").
The Offering is made only by prospectus. The prospectus contains important detailed information relating to the units being offered. Copies of the prospectus may be obtained from any of the Agents. Investors should read the prospectus before making an investment decision.
About Fiera Capital Corporation
Fiera Capital Corporation is a leading publicly-traded, independent investment firm with offices in major financial centres across North America. Fiera Capital offers the full array of traditional and alternative investment solutions for institutional, private wealth and retail clients, as well as a proactive and tactical asset allocation process. In the U.S., asset management services are provided by Fiera Capital's U.S. subsidiaries, Bel Air Investment Advisors LLC and Wilkinson O'Grady & Co., Inc.
SOURCE Canadian Preferred Share Trust