Canadian 50 Advantaged Preferred Share Fund Closes Treasury Offering of Class
A and Class F Units
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN
THE UNITED STATES./
TORONTO, Dec. 5, 2012 /CNW/ - Connor, Clark & Lunn Capital Markets Inc. (the
"Manager") is pleased to announce the closing of a treasury offering of Units
of Canadian 50 Advantaged Preferred Share Fund (the "Fund"). The Fund raised
total gross proceeds of $47,603,339.37 from the sale of 1,850,000 Class A
Units at a price of $24.33 per Class A Unit and 105,787 Class F Units at a
price of $24.51 per Class F Unit which prices were determined so as to be
non-dilutive to the net asset value per Unit of existing Unitholders. The Fund
has granted to the agents an over-allotment option, exercisable for a period
of 30 days from the closing date, to purchase up to an additional 277,500
Class A Units. The Class A Units are listed on the Toronto Stock Exchange
under the symbol "CPF.UN".
The Fund's investment objectives are to provide (i) tax-advantaged quarterly
cash distributions consisting primarily of returns of capital; and (ii)
low-cost exposure to the total return approximating that of the BMO Capital
Markets 50 Preferred Share Index (the "Preferred Share 50 Index"). Based on
current estimates and the assumptions set out in the prospectus, the Fund's
current distribution target is $0.3125 per Unit per quarter, consisting
primarily of returns of capital which are not immediately taxable but which
reduce a Unitholder's adjusted cost base of its Units.
The Preferred Share 50 Index is a market value weighted index created in 1992
to provide a benchmark representing the Canadian preferred share market and
includes 50 Canadian preferred share issues that are listed on the Toronto
Stock Exchange which satisfy specific inclusion criteria. Since its
inception, the Preferred Share 50 Index has generated an annualized return of
5.58% per year to September 30, 2012.
Connor, Clark & Lunn Capital Markets Inc. is the manager and portfolio manager
of the Fund. The Manager is part of the Connor, Clark & Lunn Financial Group,
a multi-boutique asset management firm whose affiliated managers are
collectively responsible for the investment of over $42 billion in assets as
at September 28, 2012. BMO Asset Management Inc. has been retained to manage
the Portfolio. BMO Asset Management Inc. had over $45.5 billion in total
assets under management as at August 31, 2012 and is an indirect, wholly-owned
subsidiary of the Bank of Montreal.
The Units were offered for sale by a syndicate of agents led by BMO Capital
Markets and including CIBC, RBC Capital Markets, Scotiabank, National Bank
Financial Inc., TD Securities Inc., Raymond James Ltd., Canaccord Genuity
Corp., GMP Securities L.P., Mackie Research Capital Corporation, Macquarie
Private Wealth Inc., Desjardins Securities Inc. and Manulife Securities
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.
For more information, please visitwww.cclcapitalmarkets.com or contact:
Darren Cabral Vice President & CFO Connor, Clark & Lunn Capital Markets Inc.
(416) 214-6182 or 1 (888) 276-2258 firstname.lastname@example.org
SOURCE: Canadian 50 Advantaged Preferred Share Fund
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CO: Canadian 50 Advantaged Preferred Share Fund
NI: FIN NEWSTK
-0- Dec/05/2012 13:30 GMT
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