High Rock Canadian High Yield Bond Fund

TSX : HHY.UN


August 15, 2014 08:07 ET

High Rock Canadian High Yield Bond Fund Completes Initial Public Offering

TORONTO, ONTARIO--(Marketwired - Aug. 15, 2014) -

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

Scotia Managed Companies Administration Inc., on behalf of High Rock Canadian High Yield Bond Fund (the "Fund"), is pleased to announce that the Fund has completed an initial public offering (the "Offering") of 1,433,850 Class A Units and 766,150 Class F Units (collectively, the "Units") at a price of $10.00 per Unit for aggregate gross proceeds of $22 million. The Class A Units of the Fund are listed and posted for trading on the Toronto Stock Exchange under the symbol "HHY.UN." Class F Units will not be listed on a stock exchange but were converted into Class A Units immediately upon the closing of the Offering for liquidity purposes.

The Fund has granted the Agents (as defined below) an over-allotment option to purchase up to 330,000 additional Class A Units on the same terms exercisable at any time during the next thirty days.

The Fund was created to provide unitholders with investment exposure to a diversified portfolio (the "Portfolio") of high yield bonds of Canadian corporate issuers to be actively managed by High Rock Capital Management Inc. The Fund's investment objectives are to: (i) preserve and enhance the net asset value of the Fund; and (ii) provide unitholders with stable distributions from the Portfolio, through investment primarily in high yield bonds of Canadian corporate issuers.

The Fund intends to make quarterly cash distributions to unitholders of record on the last Business Day of each calendar quarter (each, a "Distribution Record Date"). Distributions will be paid no later than the 15th day of the month following the Distribution Record Date. The initial cash distribution is anticipated to be payable on October 15, 2014, to unitholders of record on September 30, 2014.

The Units were offered for sale by a syndicate of agents led by Scotiabank and included BMO Capital Markets, CIBC, RBC Capital Markets, TD Securities Inc., National Bank Financial Inc., Acumen Capital Finance Partners Limited, Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Burgeonvest Bick Securities Limited, Desjardins Securities Inc., Dundee Securities Ltd. and Manulife Securities Incorporated (collectively, the "Agents").

Certain statements included in this news release constitute forward-looking statements. The forward-looking statements are not historical facts but reflect current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Scotia Managed Companies Administration Inc. undertakes no obligation to update publicly or otherwise revise any forward looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law. Investment funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There is no assurance that the Fund will be able to achieve its distribution and capital preservation objectives or that the full amount of a unitholders investment in the Fund will be returned. 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 any applicable exemption from the registration requirements. The press release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.

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