TORONTO, ONTARIO--(Marketwired - Jan. 5, 2017) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
RiverNorth U.S. CEF Income Fund (the "Fund") is pleased to announce that it has obtained a receipt for its preliminary prospectus for the initial public offering (the "Offering") of Class A Units and Class F Units of the Fund (collectively, the "Units"). The Class F Units are designed for fee-based and/or institutional accounts. The Class A Units will not be listed on a stock exchange, but will be convertible into Class F Units on a weekly basis.
The Units are being offered for $10.00 per Unit and the manager of the Fund, BMO Nesbitt Burns Inc. (the "Manager"), will pay all fees and all expenses of the Offering exceeding 0.50% of the gross proceeds of the Offering. As a result, the net asset value per Unit immediately following the closing of the Offering will be at least $9.95. The Manager is also the promoter of the Fund and one of the agents in connection with the Offering.
The Fund uses the Unit Traded Fund (UTF) structure which has been developed to accomplish two goals: (i) to enable the Fund to invest substantially all of the gross proceeds from the Offering in the Portfolio (as defined below); and (ii) to encourage the Class F Units to trade in the market at a price not less than 98.5% of their net asset value throughout the life of the Fund.
The Fund's investment objectives are to provide holders of Units (the "Unitholders") with: (i) monthly cash distributions; and (ii) the opportunity for capital appreciation, by investing primarily in a diversified portfolio of U.S.-listed closed-end funds, exchange-traded funds and business development companies (collectively, the "Portfolio").
The Fund's monthly distributions are initially targeted to be $0.0583 per Class A Unit and per Class F Unit ($0.70 per annum per Class A Unit and per Class F Unit) representing an annual yield of 7.00% on the $10.00 per Class A Unit and Class F Unit issue price.
RiverNorth Capital Management LLC ("RiverNorth") will be responsible for implementing the investment strategies of the Fund. RiverNorth is a wholly-owned subsidiary of RiverNorth Financial Holdings, LLC and is headquartered in Chicago, Illinois. Founded in 2000, RiverNorth is registered with the United States Securities and Exchange Commission and as of November 30, 2016 managed approximately U.S.$3.5 billion for four series of a registered open-end management investment company and private investment funds. RiverNorth specializes in the research and analysis of closed-end funds.
The syndicate of agents for the Offering is being co-led by BMO Capital Markets, CIBC Capital Markets, National Bank Financial Inc. and Scotiabank, and also includes, Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Desjardins Securities Inc., Echelon Wealth Partners Inc., Industrial Alliance Securities Inc., Laurentian Bank Securities Inc., Mackie Research Capital Corporation, Manulife Securities Incorporated and PI Financial Corp.
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.
A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from any of the agents listed above. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
RIVERNORTH U.S. CEF INCOME FUND