PineBridge Investment Grade Preferred Securities Fund
TSX : PRF.UN

June 27, 2014 08:39 ET

PineBridge Investment Grade Preferred Securities Fund Closes Initial Public Offering

TORONTO, ONTARIO--(Marketwired - June 27, 2014) -

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

PineBridge Investment Grade Preferred Securities Fund (the "Fund") (TSX:PRF.UN) is pleased to announce the closing of the initial public offering (the "Offering") of units of the Fund (the "Units") which raised gross proceeds of $32.5 million. The Fund has granted the agents an over-allotment option, exercisable for a period of 30 days from today's date, to purchase up to an additional 195,000 Units. The Units are listed on the Toronto Stock Exchange under the symbol PRF.UN.

PineBridge Investments LLC ("PineBridge Investments" or the "Portfolio Manager"), a leading global multi-asset class manager, is responsible for implementing the investment strategy of the Fund. BMO Nesbitt Burns Inc. (the "Manager") is the promoter of the Fund, one of the agents in connection with the Offering, and will act as the manager of the Fund.

The Manager paid all fees and expenses of the Offering and accordingly, the net asset value per Unit immediately following the closing of the Offering was $25.00 per Unit.

The Fund has been established to provide holders of Units ("Unitholders") with an investment in a global portfolio (the "Portfolio") comprised primarily of investment grade preferred securities. The Fund's investment objectives are to: (i) provide Unitholders with monthly cash distributions; (ii) preserve the net asset value per Unit; and (iii) reduce the risk of rising interest rates by managing Portfolio duration.

The monthly cash distributions to Unitholders are initially targeted to be $0.125 per Unit ($1.50 per annum per Unit) representing an annual yield of 6.0% on the issue price of $25.00 per Unit.

PineBridge Investments is a global asset management firm with nearly 60 years of experience in investing in developed and emerging markets. The Portfolio Manager has a globally integrated investment platform that offers core and specialized alpha-oriented solutions across asset allocation, equities, fixed income and alternatives. The Portfolio Manager, together with its affiliates, has approximately US $71.4 billion of assets under management as of March 31, 2014, including US$ 33.9 billion in fixed income securities.

The syndicate of agents for the Offering is being co-led by BMO Capital Markets, CIBC and Scotiabank, and includes National Bank Financial Inc., TD Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Desjardins Securities Inc., Mackie Research Capital Corporation, Manulife Securities Incorporated, Burgeonvest Bick Securities Limited, Dundee Securities Limited, Industrial Alliance Securities Inc. and Laurentian Bank Securities Inc. (the "Agents").

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

This offering is only made by prospectus. The prospectus contains important information relating to these securities and has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. Copies of the prospectus may be obtained from any of the Agents listed above. Investors should read the prospectus before making an investment decision.

PINEBRIDGE INVESTMENT GRADE PREFERRED SECURITIES FUND

Contact Information

  • BMO Capital Markets
    1.866.864.7760