Front Street Strategic Yield Fund Ltd.

Front Street Strategic Yield Fund Ltd.

November 24, 2011 16:06 ET

Front Street Strategic Yield Fund-Files Final Short Form Prospectus

TORONTO, ONTARIO--(Marketwire - Nov. 24, 2011) -


Front Street Strategic Yield Fund Ltd. (the "Fund") (TSX:FSS) is pleased to announce that it has filed a final short form prospectus with respect to an additional offering of up to 1,250,000 Equity Shares of the Fund (the "Equity Shares") at a price of $11.10 per Equity Share (the "Offering"). The Fund has also granted the agents an over-allotment option, exercisable in whole or in part for a period of 30 days from the date of closing, to purchase up to an additional 65,000 Equity Shares at a price of $11.10 per Equity Share. The closing of the Offering is expected to occur on Friday, December 2, 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.

The offering is made only by prospectus. The prospectus of the Fund dated November 23, 2011 contains important detailed information about the Equity Shares being offered. Copies of the prospectus may be obtained from your registered financial advisor. Investors should read the prospectus before making an investment decision.

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.

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