GENIVAR Income Fund

GENIVAR Income Fund

May 16, 2006 17:59 ET

Genivar Income Fund Files Final Prospectus

MONTREAL, QUEBEC--(CCNMatthews - May 16, 2006) -


GENIVAR Income Fund (the "Fund") is pleased to announce that it has entered into an underwriting agreement and has filed a final prospectus with the securities regulatory authorities in each of the provinces and territories of Canada in connection with its initial public offering of 10,000,000 units at a price of $10.00 per unit for total gross proceeds of $100,000,000. Based on the offering size and price, the units are expected to produce an initial annual yield of 10.0% through the payment of monthly distributions. The Fund also granted to the underwriters of the offering an over-allotment option, exercisable at any time prior to but no later than 30 days following the closing of the offering, to acquire an additional 1,000,000 units.

The proceeds of the offering will be used by the Fund to indirectly acquire a 52.8% limited partnership interest (58.1% if the over-allotment option is exercised in full) in the engineering services business previously owned and operated by GENIVAR Inc., which will include the business of MacViro Holdings Inc. ("MacViro"). The balance representing an interest of 47.2% (41.9% if the over-allotment option is exercised in full) is to be retained by GENIVAR Inc. The closing of the offering is subject to customary conditions and is expected to occur on or about May 25, 2006.

The Fund has received conditional approval for the listing of its units on the Toronto Stock Exchange under the symbol GNV.UN, subject to the Fund fulfilling all of the requirements of the TSX.

The offering is made through an underwriting syndicate co-led by National Bank Financial Inc. and TD Securities Inc., and also includes BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., Raymond James Ltd. and Canaccord Capital Corporation.

GENIVAR is a leading Canadian engineering services firm providing private and public sector clients with a full range of professional consulting services through all execution phases of a project including planning, design, construction and maintenance. Its clients, which are of varying sizes, fall into various market segments such as building, industrial and power, urban infrastructure, transportation and environment. GENIVAR is one of the largest engineering services firm in Canada in terms of number of employees with approximately 1,150 managers, professionals, technicians and technologists and support staff in 30 offices in Canada and one office in Trinidad and Tobago.

GENIVAR has entered into an acquisition agreement whereby it is expected to acquire MacViro concurrently with the closing of the initial public offering. MacViro is an Ontario-based engineering services firm which has approximately 170 employees and provides a full range of professional consulting services in the urban infrastructure, industrial and power and environment market segments.

The units have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of such Act. Accordingly, this press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under the securities laws of any such jurisdiction.

Contact Information

  • GENIVAR Income Fund
    Marlene Casciaro
    Director of Communications
    (514) 340-0046, ext. 184