Quebec Index Income Corp.

Quebec Index Income Corp.
First Asset

First Asset

March 11, 2011 11:27 ET

Quebec Index Income Corp. Files Preliminary Prospectus

TORONTO, ONTARIO--(Marketwire - March 11, 2011) - Quebec Index Income Corp. (the "Company") announces that it has filed an amended and restated preliminary prospectus dated March 9, 2011 with the securities regulatory authorities of all of the Canadian provinces and territories for an initial public offering of shares (the "Shares") at $10 per Share.

The Company was created to invest in a portfolio (the "Portfolio") of the securities of the issuers comprising the National Bank Quebec Index™ (the "NB Quebec Index") in the same proportion as they are reflected in the NB Quebec Index, from time to time (the "Portfolio Issuers"). The NB Quebec Index is comprised of securities of Quebec-based issuers listed on the Toronto Stock Exchange (the "TSX"), as selected by National Bank of Canada using the guidelines for evaluating capitalization and liquidity. Each issuer is required to have, among other things, a minimum float capitalization of $150 million and the weight of each constituent is capped at 5% at each rebalancing date. There are currently 58 issuers included in the NB Quebec Index. Each month First Asset Investment Management Inc. (the "Manager" or "First Asset") will employ a covered call option writing program on approximately, and not more than, 25% of the securities of each Portfolio Issuer. For a more detailed summary of the NB Quebec Index, please refer to the amended and restated preliminary prospectus dated March 9, 2011 which is available at www.sedar.com.

The objectives of the Company are to provide holders of Shares (the "Shareholders") with:
     
   (a)   quarterly distributions;
     
   (b)   the opportunity for capital appreciation; and
     
   (c)   lower overall volatility of Portfolio returns than would be experienced by owning a portfolio of the securities that comprise the NBF Quebec Index.

The Company will not have a fixed distribution, but intends to set periodic distribution targets. Based on the Manager's current estimates, the initial distribution target for the Company is expected to be $0.15 per quarter ($0.60 per annum to yield 6% on the subscription price of $10 per Share).

First Asset is a Canadian wealth management company that manages and administers approximately $2.5 billion in assets.

Prospective purchasers may purchase Shares either by cash payment or an exchange of freely tradeable securities of each class or series of securities described in the table below. Prospective purchasers under the Exchange Option will be required to deposit their eligible exchange securities prior to 5:00 p.m. (Toronto time) on March 29, 2011 in the manner described in the preliminary prospectus. The Company will issue a press release as soon as practicable after the close of business on April 8, 2011 announcing the Exchange Ratio for each of the securities described in the table below. The Exchange Ratio for each security will be determined by dividing the volume weighted average trading price for such security during the three (3) consecutive trading days ending on April 8, 2011, as adjusted to reflect distributions declared in respect of such security that will not be received by the Company, by $10.00.

Issuer CUSIP TSX Symbol
5N Plus Inc. 33833X101 VNP
ACE Aviation Holdings Inc. 00440P102 ACE.B
Air Canada 008911802 AC.B
Alimentation Couche-Tard Inc. 01626P403 ATD.B
Astral Media Inc. 046346201 ACM.A
Atrium Innovations Inc. 04963Y102 ATB
BCE Inc. 05534B760 BCE
BMTC Group Inc. 05561N109 GBT.A
Bombardier Inc. 097751200 BBD.B
Boralex Inc. 09950M300 BLX
Brookfield Renewable Power Fund 112834130 BRC.UN
CAE Inc. 124765108 CAE
Canadian Helicopters Group Inc. 136000106 CHL.A
Canadian National Railway Company 136375102 CNR
Canam Group Inc. 13710C107 CAM
Cascades Inc. 146900105 CAS
CGI Group Inc. 39945C109 GIB.A
Cogeco Cable Inc. 19238V105 CCA
Cogeco Inc. 19238T100 CGO
Colabor Group Inc. 192667103 GCL
Cominar Real Estate Investment Trust 199910100 CUF.UN
Consolidated Thompson Iron Mines Limited 210206108 CLM
Dollarama Inc. 25675T107 DOL
Dorel Industries Inc. 25822C205 DII.B
EXFO Inc. 302046107 EXF
Garda World Security Corporation 36485M109 GW
GENIVAR Inc. 37230Q205 GNV
Gildan Activewear Inc. 375916103 GIL
GLV Inc. 37989R206 GLV.A
Groupe Aeroplan Inc. 399453109 AER
Industrial Alliance Insurance and Financial Services Inc. 455871103 IAG
Innergex Renewable Energy Inc. 45790B104 INE
Jean Coutu Group (PJC) Inc. (The) 47215Q104 PJC.A
Laurentian Bank of Canada 51925D106 LB
Le Chateau Inc. 521129106 CTU.A
Metro Inc. 59162N109 MRU.A
National Bank of Canada 633067103 NA
Osisko Mining Corporation 688278100 OSK
Paladin Labs Inc. 695942102 PLB
Power Corporation of Canada 739239101 POW
Power Financial Corporation 73927C100 PWF
Quebecor Inc. 748193208 QBR.B
Reitmans (Canada) Limited 759404205 RET.A
Richelieu Hardware Ltd. 76329W103 RCH
RONA inc. 776249104 RON
Saputo Inc. 802912105 SAP
Semafo Inc. 816922108 SMF
SNC-Lavalin Group Inc. 78460T105 SNC
Stella-Jones Inc. 85853F105 SJ
Tembec Inc. 87974D100 TMB
Theratechnologies Inc. 88338H100 TH
Transat A.T. Inc. 89351T302 TRZ.B
Transcontinental Inc. 893578104 TCL.A
TransForce Inc. 89366H103 TFI
Uni-Select Inc. 90457D100 UNS
Valener Inc. 91912H108 VNR
Virginia Mines Inc. 927864108 VGQ
Yellow Media Inc. 985521103 YLO

The syndicate of agents for this offering is being co-led by National Bank Financial Inc., CIBC, BMO Capital Markets, Scotia Capital Inc., and TD Securities Inc., and includes Canaccord Genuity Corp., Desjardins Securities Inc., HSBC Securities (Canada) Inc., Industrial Alliance Securities Inc. and Laurentian Bank Securities Inc.

National Bank Quebec Index™ is a trademark of National Bank of Canada and has been licensed for use by the Company. The Company is not sponsored, endorsed, sold or promoted by National Bank of Canada. National Bank of Canada does not make any representation regarding the advisability of investing in the Company.

Contact Information

  • First Asset
    Rob MacNiven
    Investor Relations
    416-642-1289 or 1-877-642-1289
    www.firstasset.com