Canadian Convertible Debenture Fund

Canadian Convertible Debenture Fund
First Asset

First Asset

October 01, 2009 09:08 ET

Canadian Convertible Debenture Fund Closes Initial Public Offering

TORONTO, ONTARIO--(Marketwire - Oct. 1, 2009) - Canadian Convertible Debenture Fund (the "Fund") (TSX:CDF.UN) is pleased to announce the closing of its initial public offering. Pursuant to the offering, the Fund issued an aggregate of 17.5 million units at $10 per unit, for gross proceeds of $175 million. The units are listed on the Toronto Stock Exchange ("TSX") under the symbol CDF.UN.

The Fund will invest in a portfolio (the "Portfolio") comprised primarily of convertible debentures of Canadian issuers. The Portfolio will be actively managed by First Asset Investment Management Inc. (the "Manager") and Mr. Lee Goldman will be the lead portfolio manager responsible for the Portfolio.

The Fund's investment objectives are to provide holders of Units with:

(a) monthly distributions initially targeted to be 7.5% per annum on the subscription price of $10.00 per Unit ($0.0625 per Unit per month or $0.75 per annum); and

(b) the opportunity for capital appreciation.

The Fund has granted the agents for the offering an over-allotment option to acquire additional units exercisable at any time during the next thirty days.

The syndicate of agents for this offering was led by CIBC World Markets Inc. and included BMO Capital Markets, National Bank Financial Inc., RBC Capital Markets, Scotia Capital Inc., Canaccord Capital Corporation, Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Blackmont Capital Inc., GMP Securities L.P., Manulife Securities Incorporated, Wellington West Capital Markets Inc. and TD Securities Inc.

Contact Information

  • First Asset
    Rob MacNiven
    Investor Relations
    416-642-1289 or 1-877-642-1289