Symphony Floating Rate Senior Loan Fund

Symphony Floating Rate Senior Loan Fund

March 09, 2012 08:46 ET

Symphony Floating Rate Senior Loan Fund Completes Treasury Offering

TORONTO, ONTARIO--(Marketwire - March 9, 2012) -


Symphony Floating Rate Senior Loan Fund (TSX:SSF.UN) is pleased to announce the completion of its treasury offering of 1,674,700 Class A Units and 245,300 Class U Units for aggregate gross proceeds of approximately $19.4 million. The Class A Units will continue to trade on the Toronto Stock Exchange under the existing symbol SSF.UN. The Class U Units are convertible into Class A Units. The Class A and Class U Units were offered at a price of $10.10 and US$10.10, respectively. The offering price of the Units was determined so as to be non-dilutive to the most recently calculated net asset value per Unit of existing unitholders prior to the filing of the final prospectus.

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 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 current distribution target is $0.05833 per Class A Unit per month and US$0.05833 per Class U Unit per month, representing an approximately 6.9% yield on the offering price, and consisting primarily of returns of capital. The Manager hedges substantially all of the value of the portfolio attributable to the Class A Units to the Canadian dollar. Substantially all of the value of the portfolio attributable to the Class U Units is unhedged.

Symphony Asset Management LLC acts 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$5.5 billion focused on senior loans and has approximately US$8.4 billion in total assets under management, as at December 31, 2011. Funds sub-advised by Symphony have achieved the top three-, five- and ten-year performance rankings by Lipper as at December 31, 2011 for the Senior Loan asset class.

Symphony is a wholly-owned subsidiary of Nuveen Investments LLC. As at December 31, 2011, Nuveen and its affiliates had a total of approximately US$220 billion of assets under management, and was the leading sponsor of US-listed closed-end funds according to Morningstar Fundamental Data, as measured by the number of funds (133) and the amount of fund assets under management (approximately US$52 billion).

The syndicate of agents for the offering was co-led by RBC Capital Markets, CIBC and BMO Capital Markets and includes National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Macquarie Private Wealth Inc., GMP Securities L.P., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., Dundee Securities Ltd. and Mackie Research Capital Corporation.

About Brompton Funds

Brompton Funds, a division of Brompton Group, is a leading and experienced closed-end fund manager. Brompton is focused on meeting the needs of investors by offering low cost, innovative products with client friendly terms and supported by strong corporate governance.

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 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 news 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 news 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.

This offering is only made by prospectus. The prospectus contains important detailed information about the securities being offered. Copies of the prospectus may be obtained from any of the above-mentioned agents. Investors should read the prospectus before making an investment decision.

Contact Information

  • For further information, please contact your
    financial advisor, call our investor relations line at
    416-642-9051, (toll-free at 1-866-642-6001)