Front Street MLP Income Fund Ltd.

December 08, 2010 09:11 ET

Front Street MLP Income Fund Ltd. Closes $70,000,000 Initial Public Offering

TORONTO, ONTARIO--(Marketwire - Dec. 8, 2010) -


Front Street MLP Income Fund Ltd. (TSX:MLP.A) is pleased to announce the closing of its initial public offering of 7,000,000 Units at a price of $10.00 per Unit for gross proceeds of $70,000,000. Each Unit consists of one non-voting equity share of the Fund (each an "Equity Share") and one transferable warrant. 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 1,050,000 Units.

Front Street MLP Income Fund Ltd. has been created to provide investors with exposure to the performance of an actively managed, diversified notional portfolio (the "MLP Portfolio") of energy infrastructure master limited partnerships ("MLPs"). This is the first public offering providing exposure to an actively managed portfolio of U.S. MLPs in Canada. MLPs are U.S. limited partnerships 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 $0.1375 per quarter, to yield 5.5% on the initial subscription price of a Unit and provide long-term capital appreciation.

The Units of the Fund are listed on the Toronto Stock Exchange under the symbol MLP.A.

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

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