DoubleLine Income Solutions Trust

DoubleLine Income Solutions Trust

December 20, 2013 09:04 ET

DoubleLine Income Solutions Trust Announces Closing of Over-Allotment Option

TORONTO, ONTARIO--(Marketwired - Dec. 20, 2013) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

DoubleLine Income Solutions Trust (the "Fund") is pleased to announce that the syndicate of agents for the initial public offering (the "Offering") of the Fund's Class A Units and Class U Units (collectively, "Units") has exercised a portion of its over-allotment option. As a result of the exercise of the over-allotment option, the Fund raised additional gross proceeds of $3,200,200 from the sale of 320,020 Class A Units. Inclusive of the over-allotment option, the Fund raised gross proceeds of approximately $84 million including $75,700,200 from the sale of 7,570,020 Class A Units and U.S.$7,685,400 from the sale of 768,540 Class U Units.

The Class A Units are listed on the Toronto Stock Exchange under the symbol "DSL.UN". The Class U Units are designed for investors wishing to make their investment in U.S. dollars and are not listed on a stock exchange but are convertible into Class A Units on a monthly basis.

The Fund has been established to provide holders of Units ("Unitholders") with an investment in a diversified portfolio (the "Portfolio") of investments selected for their potential to provide high current income, growth of capital, or both. The Fund may invest in debt securities and other income-producing investments based on the assessment of DoubleLine Capital LP ("DoubleLine"), the Fund's portfolio manager, of the potential returns and risks of different sectors of the debt security markets and of particular securities.

The Fund's primary investment objective is to seek current income; its secondary objective is to seek capital appreciation in each case by investing in the Portfolio.

The Fund intends to pay monthly cash distributions to Unitholders. Distributions are initially estimated to be $0.05417 per Class A Unit and U.S. $0.05417 per Class U Unit ($0.65 and U.S. $0.65 per annum, respectively) representing an annual yield of 6.5% on the issue price.

The Fund will also offer a mandatory market purchase program pursuant to which the Fund will offer to purchase any Class A Units offered in the market at a price that is less than 98% of the latest net asset value per Class A Unit. Under the mandatory market purchase program, the Fund will purchase up to a maximum amount in any rolling 10 business day period of 10% of the number of Class A Units outstanding at the beginning of such 10 business day period, subject to the terms set out in the Fund's declaration of trust.

DoubleLine Capital LP, at its principal offices in Los Angeles, CA, has been retained as the portfolio manager of the Fund. DoubleLine is responsible for acquiring the securities comprising the Portfolio and maintaining the Portfolio in accordance with the investment objectives, investment strategies and subject to the investment restrictions of the Fund. DoubleLine was founded in December 2009. Jeffrey Gundlach serves as Chief Executive Officer and Chief Investment Officer. The firm employs investment teams specialized in asset-allocation strategies and in sector-specific strategies within mortgage-backed securities, U.S. Treasuries and Agencies, developed market corporate and sovereign debt, emerging-market corporate and sovereign debt, equities and commodities.

BMO Nesbitt Burns Inc. is the promoter of the Fund, was one of the agents in connection with the Offering and is the manager of the Fund.

The syndicate of agents for the Offering was co-led by BMO Capital Markets, RBC Capital Markets, CIBC, Scotiabank, National Bank Financial Inc. and TD Securities Inc. and included GMP Securities L.P., Raymond James Ltd., Canaccord Genuity Corp., Macquarie Private Wealth Inc., Desjardins Securities Inc., Mackie Research Capital Corporation and Manulife Securities Incorporated.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities of the Fund have not been registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States or to a U.S. person absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.

DOUBLELINE INCOME SOLUTIONS TRUST

Contact Information

  • BMO Capital Markets
    1.866.864.7760