Symphony Floating Rate Senior Loan Fund
TSX : SSF.UN

Symphony Floating Rate Senior Loan Fund

November 01, 2011 09:10 ET

Symphony Floating Rate Senior Loan Fund Closes Initial Public Offering at Approximately $50 Million

TORONTO, ONTARIO--(Marketwire - Nov. 1, 2011) -

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

Brompton Funds Limited (the "Manager") is pleased to announce that Symphony Floating Rate Senior Loan Fund (TSX:SSF.UN) (the "Fund") has completed its initial public offering of 4,548,200 Class A Units at $10.00 per Unit and 451,800 Class U Units at US$10.00 per Unit for gross proceeds of approximately $50 million. The Class A Units will commence trading today on the Toronto Stock Exchange under the symbol SSF.UN. The Class U Units are designed for investors wishing to make their investment in U.S. dollars and will not be listed on a stock exchange but may be converted into Class A Units on a weekly basis.

The Fund's investment objectives are to (i) provide monthly tax-advantaged distributions consisting primarily of returns of capital; and (ii) preserve capital, in each case, through exposure to an actively managed, diversified portfolio consisting primarily of short-duration floating rate senior corporate debt instruments, including senior secured loans and other senior debt obligations of North American non-investment grade corporate borrowers. The Fund's initial distribution target is expected to be $0.05833 per Class A Unit per month (US$0.05833 per Class U Unit per month), representing an initial yield on the Unit issue price of 7% per annum, consisting primarily of returns of capital which are not immediately taxable but which reduce a Unitholder's adjusted cost base of its Units. The Manager intends to hedge substantially all of the value of the portfolio attributable to the Class A Units to the Canadian dollar and substantially all of the value of the portfolio attributable to the Class U Units to the U.S. dollar.

The Manager has selected Symphony Asset Management LLC, a wholly owned subsidiary of Nuveen Investments, Inc., to act as sub-advisor for SSF Trust in connection with the selection, purchase and sale of senior loans and other assets of the portfolio. Backed by an institutional calibre integrated credit platform and supported by a 17-member team of experienced credit investment professionals, Symphony manages approximately US$5.4 billion focused on senior loans with approximately US$8.9 billion in assets under management as at June 30, 2011. Funds sub-advised by Symphony have achieved top three, five and ten-year performance rankings by Lipper as at June 30, 2011 for the senior loan asset class. Nuveen and its affiliates had approximately US$210 billion of assets under management as at June 30, 2011. As at December 31, 2010, Nuveen was the leading sponsor of U.S.-listed closed-end funds according to Morningstar Fundamental Data as measured by the number of funds (132) and the amount of fund assets under management (approximately US$49 billion).

The Manager and insiders of the Manager and its parent company have purchased an aggregate of 1 million Class A Units under the offering. These purchasers will not, directly or indirectly, redeem, sell, pledge, or otherwise dispose (or agree to do so) of an aggregate of 300,000 Class A Units for a period of six months and, in addition, an aggregate of 700,000 Class A Units for a period of 12 months without the prior written consent of RBC Dominion Securities Inc. on behalf of the agents for the offering, such consent not to be unreasonably withheld.

The syndicate of agents for the offering was co-led by RBC Capital Markets, CIBC and BMO Capital Markets and included Scotia Capital Inc., TD Securities Inc., GMP Securities L.P., HSBC Securities (Canada) Inc., Raymond James Ltd., Canaccord Genuity Corp., Macquarie Private Wealth Inc., Desjardins Securities Inc., Dundee Securities Ltd., Mackie Research Capital Corporation and Manulife Securities Incorporated.

For further information, please contact your financial advisor, call our investor relations line at 416-642-9051, (toll-free at 1-866-642-6001) or visit our website at www.bromptonfunds.com.

Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the Fund's publicly filed documents which are available from SEDAR at www.sedar.com. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this press release and to other matters identified in public filings relating to the Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information.

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. This 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.

Contact Information

  • Brompton Funds Limited
    Chris Cullen
    Senior Vice-President
    416-642-9064