Advantaged Preferred Share Trust

June 06, 2006 13:58 ET

Advantaged Preferred Share Trust Closes Initial Public Offering at $38 Million

TORONTO, ONTARIO--(CCNMatthews - June 6, 2006) - Advantaged Preferred Share Trust (the "Trust") (TSX:PFR.UN) is pleased to announce that it has completed its initial public offering of 1,520,000 trust units ("Units") at a price of $25.00 per unit for gross proceeds of $38 million. The Trust's units begin trading today on the Toronto Stock Exchange under the symbol PFR.UN.

The Trust is designed to give holders of Units exposure, on a passive basis, at a low management expense ratio, to the performance of an equally-weighted, diversified notional portfolio of 50 preferred shares of Canadian issuers (the ''Notional Preferred Portfolio''). The Trust will obtain indirect exposure to the performance of the Notional Preferred Portfolio through a forward agreement. The Notional Preferred Portfolio will consist of 50 different classes or series of preferred shares with an average Dominion Bond Rating Service Limited rating of Pfd-2, initially issued by 23 different issuers. The Units of the Trust are rated Pfd-2 (low) by Dominion Bond Rating Service Limited.

The syndicate of agents for the offering is led by RBC Dominion Securities Inc. and includes BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., Desjardins Securities Inc., HSBC Securities(Canada) Inc., Raymond James Ltd., Berkshire Securities Inc., Blackmont Capital Inc., Canaccord Capital Corporation, Dundee Securities Corporation and Wellington West Capital Inc.

Contact Information

  • RBC Dominion Securities Inc.
    Cameron Goodnough
    Administrator of the Trust
    (416) 842-7719