Canadian Convertible Debenture Fund

Canadian Convertible Debenture Fund
First Asset

First Asset

August 25, 2009 15:52 ET

Canadian Convertible Debenture Fund: Files Preliminary Prospectus

TORONTO, ONTARIO--(Marketwire - Aug. 25, 2009) - Canadian Convertible Debenture Fund (the "Fund") announces that it has filed a preliminary prospectus with the securities regulatory authorities of all of the Canadian provinces for an initial public offering of a maximum of 10,000,000 trust units (the "Units") at $10 per Unit, for maximum gross proceeds of $100 million.

The Fund has been created to invest in an actively managed portfolio comprised primarily of convertible debentures of Canadian issuers. The Fund's investment objectives are to provide holders of Units with:

(i) 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

(ii) the opportunity for capital appreciation.

At closing the Manager will issue a note ("Note") to the Fund in an amount equal to the fees and expenses associated with the offering and, accordingly, it is anticipated that the initial net asset value per Unit will be $10.00. The Note will be used to reimburse the Fund for the expenses of the offering and will be repaid with interest.

The Portfolio will be actively managed by First Asset Investment Management Inc. Mr. Lee Goldman, lead portfolio manager, of First Asset Diversified Convertible Debenture Fund, will also be the lead portfolio manager responsible for the Portfolio.

On or about April 30, 2011, the Fund will, subject to receipt of all required regulatory approvals, automatically either (i) convert to an open-end mutual fund; or (ii) merge into an open-end mutual fund, on a tax-deferred basis, to be managed by the Manager or an affiliate of the Manager.

Prospective purchasers may purchase Units either by cash payment or by an exchange of freely tradeable securities of each class or series of securities described in the table below. Prospective purchasers under the Exchange Option will be required to deposit their eligible securities prior to 5:00 p.m. (Toronto time) on September 21, 2009 in the manner described in the preliminary prospectus.



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Exchange Eligible Issuer Convertible Debenture TSX CUSIP
Symbol
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Advantage Oil & Gas Ltd. 7.75% due December 1, 2011 AAV.DB.D 00765FAC5
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Advantage Oil & Gas Ltd. 6.50% due June 30, 2010 AAV.DB.E 00765FAA9
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Advantage Oil & Gas Ltd. 8.00% due December 31, 2011 AAV.DB.G 00765FAD3
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Algonquin Power Income Fund 6.65% due July 31, 2011 APF.DB 015910AA0
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Algonquin Power Income Fund 6.35% due November 30, 2016 APF.DB.A 015910AB8
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Artis Real Estate
Investment Trust 7.50% due June 30, 2014 AX.DB.E 04315LAD7
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Artis Real Estate
Investment Trust 6.25% due May 31, 2013 AX.DB.C 04315LAC9
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Artis Real Estate
Investment Trust 7.50% due November 9, 2010 AX.DB.B 960196AB9
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Atlantic Power Corporation 6.25% due October 31, 2011 ATP.DB 04878QAH6
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Canadian Royalties Inc. 7.00% due March 31, 2015 CZZ.DB 136551AA6
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Canexus Income Fund 8.00% due December 31, 2014 CUS.DB 13751RAB0
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Chartwell Seniors
Housing Real Estate
Investment Trust 6.00% due December 1, 2011 CSH.DB 16140UAA8
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Chartwell Seniors Housing
Real Estate Investment
Trust 5.90% due May 1, 2012 CSH.DB.A 16140UAB6
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Cineplex Galaxy Income Fund 6.00% due December 31, 2012 CGX.DB 172453AA0
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Clarke Inc. 6.00% due December 31, 2013 CKI.DB.A 181901AB5
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Clearwater Seafoods
Income Fund 7.00% due October 31, 2010 CLR.DB 185384AA2
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Clearwater Seafoods
Income Fund 7.25% due March 31, 2014 CLR.DB.A 185384AB0
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Colabor Income Fund 7.00% due December 31, 2011 CLB.DB 192668AA9
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Cominar Real Estate
Investment Trust 6.30% due June 30, 2014 CUF.DB 199910AA8
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Cominar Real Estate
Investment Trust 5.70% due June 30, 2014 CUF.DB.B 199910AB6
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Cominar Real Estate
Investment Trust 5.80% due September 30, 2014 CUF.DB.C 199910AD2
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Connacher Oil and Gas
Limited 4.75% due June 30, 2012 CLL.DB.A 20588YAA1
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Crombie Real Estate
Investment Trust 7.00% due March 20, 2013 CRR.DB 227107AA7
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Daylight Resources Trust 10.00% due December 31, 2013 DAY.DB.C 239600AE9
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Daylight Resources Trust 8.50% due October 31, 2012 DAY.DB.B 239600AB5
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Discovery Air Inc. 8.75% due December 31, 2011 DA.DB 25470EAA5
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Dundee Real Estate
Investment Trust 6.00% due December 31, 2014 D.DB.B 265270AD0
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Enterra Energy Trust 8.00% due December 31, 2011 ENT.DB 29381PAA0
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Enterra Energy Trust 8.25% due June 30, 2012 ENT.DB.A 29381PAB8
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Extendicare Real Estate
Investment Trust 5.70% due June 30, 2014 EXE.DB 302251AA1
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Extendicare Real Estate
Investment Trust 7.25% due June 30, 2013 EXE.DB.A 302251AB9
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Fairborne Energy Ltd. 6.50% due December 31, 2011 FEL.DB 303623AA0
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Firm Capital Mortgage
Investment Trust 6.00% due June 30, 2013 FC.DB 318324AA8
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First Capital Realty Inc. 5.50% due September 30, 2017 FCR.DB.A 31943BAH3
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First Uranium Corporation 4.25% due June 30, 2012 FIU.DB 33744RAA0
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Fort Chicago Energy
Partners L.P. 6.75% due December 31, 2010 FCE.DB.B 346921AB5
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General Donlee Income Fund 7.00% due June 30, 2014 GDI.DB 369540AA7
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H&R Real Estate Investment
Trust 6.75% due December 31, 2014 HR.DB.B 403925AB6
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Harvest Energy Trust 6.50% due December 31, 2010 HTE.DB.B 41752XAD3
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Harvest Energy Trust 6.40% due October 31, 2012 HTE.DB.D 41752XAF8
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Harvest Energy Trust 7.25% due September 30, 2013 HTE.DB.E 41752XAH4
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Harvest Energy Trust 7.25% due February 28, 2014 HTE.DB.F 41752XAJ0
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Huntingdon Real Estate
Investment Trust 7.50% due March 31, 2012 HNT.DB.C 446027AC8
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InnVest Real Estate
Investment Trust 6.00% due May 31, 2013 INN.DB.B 45771TAD0
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InnVest Real Estate
Investment Trust 5.85% due August 1, 2014 INN.DB.C 45771TAE8
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InterRent Real Estate
Investment Trust 7.00% due January 31, 2013 IIP.DB 46071WAA4
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Just Energy Exchange Corp. 6.00% due September 30, 2014 JEX.DB 48214AAA6
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Keyera Facilities Income
Fund 8.25% due December 31, 2013 KEY.DB.A 493272AB4
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Killam Properties Inc. 6.50% due May 5, 2012 KMP.DB 494104AB8
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Liquor Stores Income Fund 6.75% due December 31, 2012 LIQ.DB 536345AA9
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Macquarie Power &
Infrastructure Income Fund 6.75% due December 31, 2010 MPT.DB 556084AA9
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Medical Facilities
Corporation 7.50% due April 30, 2013 DR.DB 58457VAC1
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NAL Oil & Gas Trust 6.75% due August 31, 2012 NAE.DB 628949AA7
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Newalta Inc. 7.00% due November 30, 2012 NAL.DB 65020PAA1
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Northland Power Income Fund 6.50% due June 30, 2011 NPI.DB 666910AA2
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Pacific Rubiales Energy
Corp. 8.00% due August 29, 2013 PRE.DB 69480UAA5
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Paramount Energy Trust 6.25% due June 30, 2010 PMT.DB.A 699219AC5
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Paramount Energy Trust 6.25% due April 30, 2011 PMT.DB.B 699219AE1
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Paramount Energy Trust 6.50% due June 30, 2012 PMT.DB.C 699219AF8
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PDM Royalties Income Fund 7.75% due December 31, 2011 PDM.DB 69329MAA8
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Pengrowth Energy Trust 6.50% due December 31, 2010 PGF.DB 706902AA1
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Penn West Energy Trust 6.50% due December 31, 2011 PWT.DB.F 707885AF6
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Penn West Energy Trust 8.00% due June 30, 2010 PWT.DB.B 707885AA7
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Penn West Energy Trust 7.20% due May 31, 2011 PWT.DB.E 707885AB5
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Primaris Retail Real Estate
Investment Trust 5.85% due August 1, 2014 PMZ.DB 74157UAC3
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Priszm Income Fund 6.50% due June 30, 2012 QSR.DB 74270LAA9
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Progress Energy Resources
Corp. 6.75% due June 30, 2010 PRQ.DB 74326YAA5
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Progress Energy Resources
Corp. 6.25% due September 30, 2011 PRQ.DB.A 74326YAB3
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Provident Energy Trust 6.50% due August 31, 2012 PVE.DB.C 74386KAD6
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Provident Energy Trust 6.50% due April 30, 2011 PVE.DB.D 74386KAE4
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Retrocom Mid-Market Real
Estate Investment Trust 7.50% due July 31, 2012 RMM.DB 761298AA6
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Rogers Sugar Income Fund 6.00% due June 29, 2012 RSI.DB.A 774910AC7
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Rogers Sugar Income Fund 5.90% due June 29, 2013 RSI.DB.B 774910AE3
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Scott's Real Estate
Investment Trust 7.00% due December 31, 2012 SRQ.DB 810205AA2
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Superior Plus Corp. 5.75% due December 31, 2012 SPB.DB.B 86828PAA1
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Superior Plus Corp. 5.85% due October 31, 2015 SPB.DB.C 86828PAB9
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Superior Plus Corp. 7.50% due December 31, 2014 SPB.DB.D 86828PAC7
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Trinidad Drilling Ltd. 7.75% due July 31, 2012 TDG.DB 896356AA0
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True Energy Trust 7.50% due June 30, 2011 TUI.DB 897839AA4
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Uranium One Inc. 4.25% due December 31, 2011 UUU.DB 91701PAA3
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Western Canadian Coal Corp. 7.50% due March 24, 2011 WTN.DB 957860AA7
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Whiterock Real Estate
Investment Trust 6.30% due December 31, 2011 WRK.DB.E 965531AE6
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The syndicate of agents for this offering is being led by CIBC World Markets Inc., BMO Capital Markets and National Bank Financial Inc., and includes, 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 and Wellington West Capital Markets Inc.

Contact Information

  • First Asset
    Rob MacNiven
    Investor Relations
    416-642-1289 or 1-877-642-1289
    www.firstasset.com