Front Street Strategic Yield Fund Ltd.

Front Street Strategic Yield Fund Ltd.

November 11, 2011 16:50 ET

Front Street Strategic Yield Fund-Additional Offering and Increased Quarterly Distribution

TORONTO, ONTARIO--(Marketwire - Nov. 11, 2011) -


Front Street Strategic Yield Fund Ltd. (TSX:FSS) (the "Fund") is pleased to announce that it has filed a preliminary short form prospectus with respect to an additional offering of Equity Shares of the Fund, which will be capped at $50 million. The Fund is also announcing that with respect to the quarter ending December 31, 2011, the Fund intends to pay a quarterly distribution of $0.15 per Equity Share which is an increase from the current quarterly distribution of $0.125. The distribution of $0.15 per Equity Share for the quarter ending December 31, 2011 is anticipated to be payable on or before January 14, 2012 to Shareholders of record on December 31, 2011.

The Fund's investment objectives are (i) to provide holders of Equity Shares ("Shareholders") with quarterly tax-advantaged cash distributions, and (ii) to maximize risk adjusted returns to Shareholders, consisting primarily of tax-advantaged distributions, while preserving capital.

The Fund obtains economic exposure to a portfolio which is focused primarily on convertible debentures and warrants of Canadian issuers and to a lesser extent on merger arbitrage. The portfolio is actively managed by Flatiron Capital Management Partners using interest yielding and market neutral trading strategies designed to maximize risk adjusted returns and preserve capital. Over the course of an economic cycle, the goal is to generate consistent tax advantaged absolute returns on a quarterly basis with low volatility.

The Fund is managed by Front Street Capital 2004 and advised by Flatiron Capital Management Partners. The Equity Shares of the Fund are listed on the Toronto Stock Exchange under the symbol FSS.

The syndicate of agents for the offering is being co-led by RBC Capital Markets and CIBC and includes GMP Securities L.P., National Bank Financial Inc., TD Securities Inc., BMO Capital Markets, Canaccord Genuity Corp., Macquarie Capital Markets Canada Ltd., Raymond James Ltd., Manulife Securities Incorporated, Sherbrooke Street Capital (SSC) Inc. and Tuscarora Capital Inc.

A preliminary prospectus containing important information relating to the Equity Shares has been filed with securities commissions or similar authorities in all provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from your registered financial advisor. There will not be any sale or any acceptance of an offer to buy the Equity Shares until a receipt for the final prospectus has been issued.

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

Contact Information