TORONTO and MONTREAL, July 2, 2015 /CNW Telbec/ - Canadian Preferred Share Trust (the "Trust") announces the closing of its initial public offering (the "Offering") for aggregate gross proceeds of approximately $90 million. Pursuant to the Offering, the Trust issued Class A Units and Class F Units (together, the "Units") at a price of $10.00per Unit. The Trust has granted the Agents an over-allotment option, exercisable for a period of 30 days from today's date, to purchase up to an additional 1 million Class A Units.
The Class A Units are listed on the Toronto Stock Exchange under the symbol PFT.UN. 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 Trust's investment objectives are to:
(i) provide holders of Units with monthly cash distributions;
(ii) preserve capital and provide the opportunity for capital appreciation; and
(iii) reduce the risk of rising interest rates by managing portfolio duration.
The Trust has been created to invest in an actively managed portfolio comprised primarily of Canadian preferred shares. The Trust'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 Trust. Fiera Capital is responsible for creating, structuring, managing and promoting the Trust and will also implement the Trust's investment strategies.
The syndicate of agents for this offering is being co-led by RBC Capital Markets, CIBC and Scotiabank, and includes 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
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. For more information, visit www.fieracapital.com.
SOURCE Canadian Preferred Share Trust