Advantaged Canadian High Yield Bond

February 08, 2011 19:16 ET

Advantaged Canadian High Yield Bond Fund Announces Initial Public Offering

TORONTO, ONTARIO--(Marketwire - Feb. 8, 2011) -


Scotia Managed Companies Administration Inc. (the "Manager") is pleased to announce that an amended and restated preliminary prospectus in connection with an initial public offering of units for the Advantaged Canadian High Yield Bond Fund (the "Fund") has been filed with, and a receipt therefor has been issued by, the securities regulatory authorities in each of the provinces and territories of Canada. The Fund is a closed-end investment fund established under the laws of the Province of Ontario which proposes to issue Class A Units and Class F Units (the "Units") at a price of $10.00 per Unit.

The Fund's investment objectives are to: (i) preserve and enhance the net asset value of the Fund; and (ii) provide unitholders with quarterly tax-advantaged distributions, initially expected to total $0.675 per Class A Unit and $0.74 per Class F Unit per annum (representing an annual yield of 6.75% per Class A Unit and 7.40% per Class F Unit based on the new issue price of $10.00 per Unit).

The Fund was created to provide unitholders with investment exposure to a diversified portfolio of Canadian high yield fixed income securities to be actively managed by High Rock Capital Management Inc. (the "Portfolio Manager"). The Portfolio Manager believes that Canadian high yield fixed income securities can provide investors with: (i) attractive yields that historically have had a low correlation with rising interest rates; (ii) the potential for "equity-like" total return performance with lower volatility than equities; (iii) portfolio diversification from other fixed income securities; and (iv) a replacement for income trust securities.

It is anticipated that on or about March 29, 2013, the Fund will become an open-end mutual fund and the Class A Units will be delisted from any stock exchange on which they are then listed and the Units will be redeemable at their net asset value per Unit on a weekly basis.

The offering is being conducted by a syndicate of agents led by Scotia Capital Inc. and includes BMO Nesbitt Burns Inc., GMP Securities L.P., National Bank Financial Inc., TD Securities Inc., Canaccord Genuity Corp., HSBC Securities (Canada) Inc., Raymond James Ltd., Acumen Capital Finance Partners Limited, Dundee Securities Ltd., Macquarie Private Wealth Inc., Union Securities Ltd. and Wellington West Capital Markets Inc.

An amended and restated preliminary prospectus dated February 7, 2011 containing important information relating to these securities has been filed with securities commissions or similar authorities in all of the provinces and territories of Canada. The amended and restated preliminary prospectus is still subject to completion or amendment. Copies of the amended and restated preliminary prospectus may be obtained from your broker or from one of the agents listed above. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued. Units will not be offered for sale to residents of the United States.

Capitalized terms used in this press release and not otherwise defined have the meanings given thereto in the amended and restated preliminary prospectus.

Certain statements included in this news release constitute forward-looking statements. The forward-looking statements are not historical facts but reflect current expectations regarding future results or events. These forward- looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Manager undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law. Investment funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There is no assurance that the Fund will be able to achieve its distribution and capital preservation objectives or that the full amount of a unitholders investment in the Fund will be returned.

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