Advantaged Canadian High Yield Bond Fund

March 31, 2011 09:03 ET

Advantaged Canadian High Yield Bond Fund Completes $56.5 Million Initial Public Offering

TORONTO, ONTARIO--(Marketwire - March 31, 2011) -

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Scotia Managed Companies Administration Inc. is pleased to announce that the Advantaged Canadian High Yield Bond Fund (the "Fund") has completed an initial public offering (the "Offering") of 4,045,620 Class A Units and 1,604,380 Class F Units (collectively, the "Units") of the Fund at a price of $10.00 per unit for aggregate gross proceeds of $56.5 million. The Fund has granted the agents an over-allotment option exercisable in whole or in part for a period of 30 days following the closing of the Offering to acquire up to an additional 847,500 Class A Units (the "Over- Allotment Option"). The Class A Units of the Fund are listed and posted for trading on the Toronto Stock Exchange under the symbol "AHY.UN." The Class F Units will not be listed on a stock exchange but may be converted into Class A Units on a weekly basis for liquidity purposes.

The Fund is a closed-end investment fund established under the laws of the Province of Ontario. 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.

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 consisting of returns of capital and capital gains, through investment exposure to Canadian high yield fixed income 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 syndicate of agents was led by Scotia Capital Inc. and included 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.

Capitalized terms used in this press release and not otherwise defined have the meanings given thereto in the prospectus of the Fund dated March 7, 2011.

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. Scotia Managed Companies Administration Inc. 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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