Canoe EIT Income Fund Announces Closing of $10,500,000 preferred Unit Over-Allotment Option
24 April 2018 - 12:30AM
Not for Distribution to U.S. Newswire
Services or for Dissemination in the United States of
America.
Canoe EIT Income Fund (the “Fund”)
(TSX:EIT.UN)(TSX:EIT.PR.A)(TSX:EIT.PR.B) announced today that the
syndicate of underwriters for the offering (the “Offering”) of
4.80% Cumulative Redeemable Series 2 Preferred Units (the “Series 2
Preferred Units”) of the Fund has fully exercised its
over-allotment option. As a result of the exercise of the
over-allotment option, the Fund raised additional gross proceeds of
$10,500,000 from the sale of 420,000 Series 2 Preferred Units.
Inclusive of the over-allotment option, the Fund raised gross
proceeds of $80,500,000 from the sale of 3,220,000 Series 2
Preferred Units. The Series 2 Preferred Units are listed on
the Toronto Stock Exchange under the symbol “EIT.PR.B”.
The Series 2 Preferred Units were offered to the
public through a syndicate of underwriters led by Scotiabank which
also included CIBC Capital Markets, RBC Capital Markets, BMO
Capital Markets, TD Securities Inc., National Bank Financial Inc.,
Industrial Alliance Securities Inc., Canaccord Genuity Corp., and
Manulife Securities Incorporated.
The Fund intends to use the proceeds from the
Offering in accordance with the investment objectives and
investment strategies of the Fund, subject to the investment
restrictions of the Fund. The Series 2 Preferred Units are
rated Pfd – 2 (high) by Dominion Bond Rating Service Limited.
The Fund’s regular monthly distribution
of $0.10 per unit for unitholders of EIT.UN units remains
unchanged. The Fund has maintained the $0.10 per unit monthly
distribution since August 2009, through varying market conditions.
The Fund’s annual voluntary redemption feature for unitholders of
EIT.UN units remains unchanged. Once a date has been set for the
2018 annual redemption, the Fund will issue a news release with the
details.
The Series 2 Preferred Units have not been, nor
will be, registered under the United States Securities Act of 1933,
as amended, or any state securities laws and may not be offered or
sold in the United States or to U.S. persons absent registration or
applicable exemption from the registration requirement of such Act
and applicable state securities laws. This news release shall not
constitute an offer to sell, or the solicitation of an offer to
buy, nor shall there be any sale of these securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to qualification under the securities laws of any
such jurisdiction.
About the Fund
The Fund is one of Canada's largest, diversified
closed-end investment funds and is listed on the TSX under the
symbols EIT.UN, EIT.PR.A and EIT.PR.B. The Fund is actively managed
and invests in a diversified portfolio of income-generating and
capital growth-oriented securities. The Fund is designed to
maximize distributions and net asset value for the benefit of its
unitholders. The Fund is managed by Robert Taylor, Senior Vice
President and Portfolio Manager of Canoe Financial LP.
About Canoe Financial LP
Canoe is one of Canada’s fastest growing
independent mutual fund companies managing over $4.5 billion in
assets across a diversified range of award-winning mutual funds,
flow-through limited partnerships and private energy equity
products. Founded in 2008, Canoe Financial LP is an employee-owned
investment management firm focused on building financial wealth for
Canadians. Canoe has expanded from its Calgary head office to
across Canada, including offices in Toronto, Vancouver, Winnipeg,
Ottawa and Montreal.
Further Information
Investor Relations Canoe Financial LP
1–877–434–2796info@canoefinancial.com
Disclaimer
Forward Looking Statement: Certain statements
included in this news release constitute forward looking statements
which reflect Canoe Financial LP’s (as manager of the Fund and on
behalf of the Fund) current expectations regarding future results
or events. Words such as “may,” “will,” “should,” “could,”
“anticipate,” “believe,” “expect,” “intend,” “plan,” “potential,”
“continue” and similar expressions have been used to identify these
forward-looking statements. In addition, any statement regarding
future performance, strategies, prospects, action or plans is also
a forward-looking statement. Market predictions and forward-looking
statements are subject to known and unknown risks and uncertainties
and other factors that may cause actual results, performance,
events, activity and achievements to differ materially from those
expressed or implied by such statements. Forward looking statements
involve significant risks and uncertainties and a number of factors
could cause actual results to materially differ from expectations
discussed in the forward looking statements including, but not
limited to, changes in general economic and market conditions and
other risk factors. Although the forward-looking statements are
based on what Canoe Financial LP believes to be reasonable
assumptions, we cannot assure that actual results will be
consistent with these forward-looking statements. Investors should
not place undue reliance on forward-looking statements. These
forward-looking statements are made as of the current date and we
assume no obligation to update or revise them to reflect new events
or circumstances.
The Fund makes monthly distributions of an
amount comprised in whole or in part of return of capital (ROC) of
the net asset value per unit. A ROC reduces the amount of your
original investment and may result in the return to you of the
entire amount of your original investment. ROC that is not
reinvested will reduce the net asset value of the Fund, which could
reduce the Fund’s ability to generate future income. You should not
draw any conclusions about the Fund’s investment performance from
the amount of this distribution.
Commissions, trailing commissions, management
fees and expenses all may be associated with investment funds.
Please read the information filed about the Fund on www.sedar.com
before investing. The indicated rates of return are the historical
and annual compounded total returns including changes in unit value
and reinvestment of all distributions and do not take into account
sales, redemption, distribution, or optional charges or income
taxes payable by any security holder that would have reduced
returns. Investment funds are not guaranteed and past performance
may not be repeated.
This communication is not to be construed as a
public offering to sell, or a solicitation of an offer to buy
securities. Such an offer can only be made by way of a prospectus
or other applicable offering document and should be read carefully
before making any investment. This release is for information
purposes only. Investors should consult their Investment Advisor
for details and risk factors regarding specific strategies and
various investment products.
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