Copernican British Banks Fund to list on TSX July 17
2007-07-13 17:25 MT - New Listing
TSX bulletin 2007-1012
An application has been granted for the original listing in the industrial category of up to 51.75 million trust units and up to 17.25 million warrants of Copernican British Banks Fund, of which up to 30 million trust units and up to 15 million warrants will be issued and outstanding, and up to 21.75 million trust units and 2.25 million warrants will be reserved for issuance upon completion of a public offering. Listing of the trust units and warrants will become effective at 5:01 p.m. on Monday, July 16, 2007, in anticipation of the offering closing on Tuesday, July 17, 2007. The trust units and warrants, other than those which have not been distributed to the public, will be posted for trading at the open on Tuesday, July 17, 2007.
Each warrant will entitle the holder to purchase one trust unit at subscription price of $10 on or before 5 p.m. (Toronto time) on June 14, 2010. The warrants will be governed by the terms of a warrant indenture between the company and CIBC Mellon Trust Co.
Registration of interests in and transfers of trust units and the warrants will be made only through the book-entry-only system of CDS Clearing and Depository Services Inc. Book-entry-only certificates representing the trust units and the warrants will be issued in registered form to CDS on the closing date. Trust units and warrants must be purchased, transferred and surrendered for retraction only through a CDS participant.
Additional information on the trust units and warrants may be found in the final prospectus dated June 25, 2007, which is available at www.sedar.com. Capitalized terms not otherwise defined are as defined in the prospectus.
Trust units symbol: CBB.UN
Trust units Cusip No.: 21727V 10 9
Trading currency: Canadian dollars
Warrant symbol: CBB.WT
Warrant Cusip No.: 21727V 11 7
Warrant trading currency: Canadian dollars
Designated market-maker: Raymond James Ltd.
Other markets: None
Incorporation: The fund is a close-ended investment trust established under the laws of the Province of Ontario pursuant to a declaration of trust dated June 25, 2007.
Investment manager: AIC Investment Services Inc.
Manager: Copernican Capital Corp.
Fiscal year-end: Dec. 31
Transfer agent and registrar: CIBC Mellon Trust Co., at its principal office in Toronto
Nature of business: The fund has been created to provide investors with exposure to some of the world's leading, British bank-based, financial services companies that the investment manager believes have both attractive dividend yields and strong earnings growth momentum. The portfolio will only include common shares of companies that have a market capitalization, at the time of investment, of at least $1-billion (U.S.). In addition, up to 25 per cent of the (NAV) net asset value of the fund may be invested in equity securities of global banks other than British Banks the fund's investment objectives are: (i) to provide holders of trust units with monthly cash distributions; and (ii) to preserve and enhance the net asset value of the fund.
Distributions: The fund intends to pay monthly distributions. The initial indicative distribution of the fund is 6.67 cents per trust unit per month (80 cents per trust unit per year) representing a yield of 8 per cent per year based on the $10 per unit issue price. Commencing in 2008, the fund will annually determine and announce each February an indicative distribution amount for the following 12 months based upon the prevailing market conditions and the manager's estimate of distributable cash flow for the year. The initial cash distribution is anticipated to be payable on Sept. 14, 2007, to unitholders of record as at Aug. 31, 2007, which will be prorated from the closing date. The fund may make additional distributions provided certain conditions are met and the manager considers it appropriate in the circumstances at such time. No assurance can be given as to the amount of the indicative distribution in future years.
Public offering: Pursuant to the terms of the prospectus, up to 30 million units are being offered to the public by CIBC World Markets Inc., RBC Dominion Securities Inc., Scotia Capital Inc., TD Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., Berkshire Securities Inc., Canaccord Capital Corp., Desjardins Securities Inc., Dundee Securities Corp., HSBC Securities (Canada) Inc., Raymond James Ltd., Bieber Securities Inc., Blackmont Capital Inc., Burgeonvest Securities Ltd., Laurentian Bank Securities Inc. and Wellington West Capital Inc., as agents at a price of $10 per unit. Each unit consists of one trust unit and one-half of a warrant. In addition, the underwriters have been granted an overallotment option to purchase up to an additional 4.5 million trust units at a price of $9.80 per trust unit and up to an additional 2.25 million warrants exercisable at price of 20 cents per each one-half warrant. The units will separate into trust units and warrants immediately upon issue.
