Financial Preferred Securities Corporation

Financial Preferred Securities Corporation

April 19, 2007 18:02 ET

Re-Opening of Financial Preferred Securities Corporation

TORONTO, ONTARIO and CALGARY, ALBERTA--(CCNMatthews - April 19, 2007) - CGF Funds Management Ltd. (TSX:FPR.PR.A) is pleased to announce the re-opening of Financial Preferred Securities Corporation. Financial Preferred Securities Corporation has filed a preliminary short form prospectus in each of the provinces of Canada to qualify the distribution of additional Preferred Shares of the Corporation at a price per Preferred Share to be determined but intended to equal the net asset value of the Corporation plus an amount to ensure that the offering is not dilutive to the net asset value or notional cash flow per Preferred Share. The Preferred Shares are listed on the TSX under the symbol "FPR.PR.A". On April 12, 2007 the closing price of the Preferred Shares on the TSX was $25.15 per Preferred Share with a net asset value of $23.41 per Preferred Share.

The Preferred Shares are rated P-2 (high)f by S&P and will be redeemed by the Corporation on December 31, 2016.

The offering is made through a syndicate of agents co-led by: CIBC World Markets Inc., BMO Nesbitt Burns Inc., and TD Securities Inc.; and including National Bank Financial Inc., Scotia Capital Inc., Desjardins Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Blackmont Capital Inc., Dundee Securities Corporation, Raymond James Ltd., Research Capital Corporation, Wellington West Capital Inc., Bieber Securities Inc. and GMP Securities L.P. A copy of the preliminary prospectus may be obtained from any syndicate member.

CGF Funds Management Ltd. is the Administrator of the Corporation and Shaunessy Investment Counsel Inc. is the Rebalancing Advisor.

Citadel Group of Funds: The Citadel Group of Funds is a group of income oriented structured product funds providing investment opportunities to the public. The Citadel Group currently consists of 12 exchange-listed closed-end funds and 2 non-listed funds. As of March 31, 2007, the group collectively had approximately $2.5 billion in assets under administration. To find out more about the Corporation, including portfolio holdings, net asset values and investment objectives, please visit our website at or see below.

A preliminary prospectus relating to the Preferred Shares has been filed with the securities commission or similar authority in each of the provinces of Canada but has not yet become final for the purpose of a distribution to the public. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy the Preferred Shares in any province of Canada prior to the time a receipt for the final prospectus or other authorization is obtained from the securities commission or similar authority in such province.

Contact Information

  • Financial Preferred Securities Corporation
    Joe MacDonald
    Executive Vice President, Sales and Marketing