Front Street MLP Income Fund II Ltd.

Front Street MLP Income Fund II Ltd.

May 20, 2011 08:25 ET

Front Street MLP Income Fund II Ltd. Closes $53 Million Initial Public Offering

TORONTO, ONTARIO--(Marketwire - May 20, 2011) -


Front Street MLP Income Fund II Ltd. is pleased to announce the closing of its initial public offering of 5.3 million Equity Shares at a price of $10.00 per Equity Share for gross proceeds of $53 million. The agents have been granted 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 795,000 Equity Shares.

Front Street MLP Income Fund II Ltd. has been created to provide investors with exposure to an actively managed, diversified notional portfolio (the "MLP Portfolio") of energy infrastructure master limited partnerships ("MLPs"). MLPs are U.S. limited partnerships or limited liability companies that are publicly traded on U.S. securities exchanges. MLPs are primarily engaged in the transportation, storage, processing, refining, marketing, exploration and production and mining of minerals or natural resources. Front Street Capital 2004 is the manager of the Fund, and SteelPath Fund Advisors, LLC is the specialist MLP portfolio advisor.

The Fund, through its exposure to the MLP Portfolio, will seek to provide investors with quarterly tax-advantaged cash distributions, initially targeted to be $0.13125 per quarter, representing a distribution rate of 5.25% on the initial subscription price of an Equity Share, and provide long-term capital appreciation.

The Equity Shares of the Fund are listed on the Toronto Stock Exchange under the symbol MLQ.

The syndicate of agents for the offering was co-led by CIBC, RBC Capital Markets and National Bank Financial Inc., and also included BMO Nesbitt Burns Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., Dundee Securities Ltd., GMP Securities L.P., HSBC Securities (Canada) Inc., Macquarie Private Wealth Inc., Raymond James Ltd., Wellington West Capital Markets Inc., Sherbrooke Street Capital (SSC) Inc. and Tuscarora Capital Inc.

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