Brand Leaders Income Fund Closes its $30 million Initial Public Offering
July 19 2011 - 8:21AM
Marketwired
Harvest Portfolios Group Inc. (TSX: HBL.UN) (the "Manager") is
pleased to announce that Brand Leaders Income Fund (the "Fund") has
completed today its initial public offering (the "Offering") of
2,500,000 Units at a price of $12.00 per Unit for aggregate gross
proceeds of $30,000,000. The Fund has granted the Agents an
over-allotment option (the "Over-Allotment Option") exercisable in
whole or in part for a period of 30 days following today's closing
of the Offering.
The Units are now trading on the Toronto Stock Exchange under
the symbol HBL.UN.
The Fund's investment objectives are to provide Unitholders
with: (i) monthly cash distributions; (ii) the opportunity for
capital appreciation; and (iii) lower overall volatility of
Portfolio returns than would otherwise be experienced by owning
Equity Securities of the Brand Leaders directly.
The Fund will invest in an equally-weighted portfolio of Equity
Securities of 15 Brand Leaders from the Brand Leaders Investable
Universe that have a market capitalization of at least US$10
billion at the time of investment and meet certain investment
characteristics.
In order to seek to generate additional returns, Highstreet
Asset Management Inc. (the "Investment Manager" or "Highstreet")
will sell "at-the-money" call options each month on Equity
Securities held in the Portfolio.
The Fund's initial distribution target is $0.065 per Unit per
month ($0.78 per annum representing an annual cash distribution of
6.5% based on the $12.00 per Unit issue price).
Highstreet will be responsible for the execution of the Fund's
overall investment strategy, including managing the composition of
the Portfolio.
The syndicate of agents is being co-led by BMO Capital Markets
and CIBC, and includes RBC Capital Markets, Scotia Capital Inc.,
National Bank Financial Inc., TD Securities Inc., Canaccord Genuity
Corp., HSBC Securities (Canada) Inc., Dundee Securities Ltd., GMP
Securities L.P., Raymond James Ltd., Wellington West Capital
Markets Inc., Desjardins Securities Inc., Industrial Alliance
Securities Inc. and Macquarie Private Wealth Inc. (collectively,
the "Agents").
Counsel on behalf of the Fund and the Manager is Borden Ladner
Gervais LLP and counsel on behalf of the Agents is Blake, Cassels
& Graydon LLP.
Certain statements included in this news release constitute
forward-looking statements, including, but not limited to, those
identified by the expressions "expect", "intend", "will" and
similar expressions to the extent they relate to the Fund, the
Manager and/or the Investment Manager. The forward-looking
statements are not historical facts but reflect the Fund's, the
Manager's and/or Investment Manager's current expectations
regarding future results or events. These forward-looking
statements are subject to a number of risks and uncertainties that
could cause actual results or events to differ materially from
current expectations. Although the Fund, the Manager and/or the
Investment Manager believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and,
accordingly, readers are cautioned not to place undue reliance on
such statements due to the inherent uncertainty therein. The Fund,
the Manager and/or the Investment Manager undertakes no obligation
to update publicly or otherwise revise any forward-looking
statement or information whether as a result of new information,
future events or other such factors which affect this information,
except as required by law.
All capitalized terms noted herein but not defined are as
defined in the Fund's prospectus dated June 29, 2011.
Contacts: Harvest Portfolios Group Inc. Michael Kovacs
1-866-998-8298 mkovacs@harvestportfolios.com For additional
information, please contact your registered financial advisor.
Brand Leaders Income (TSX:HBL.UN)
Historical Stock Chart
From Apr 2024 to May 2024
Brand Leaders Income (TSX:HBL.UN)
Historical Stock Chart
From May 2023 to May 2024