European Premium Dividend to list on TSX on Nov. 19
2007-11-15 18:40 MT - New Listing
TSX bulletin 2007-1624
An application has been granted for the original listing in the industrial category of up to 17.25 million trust units and up to 5.75 million warrants of the fund, of which up to 10 million units and up to five million warrants will be issued and outstanding, and up to 7.25 million units and up to 750,000 warrants will be reserved for issuance upon completion of an initial public offering.
Listing of the units and warrants will become effective at 5:01 p.m. on Friday, Nov. 16, 2007, in anticipation of the offering closing on Monday, Nov. 19, 2007. The units and warrants will be posted for trading at the open on Monday, Nov. 19, 2007. Each warrant entitles the holder to purchase one unit of the fund at specific times only as described below, at a price of $10 and will expire at 5 p.m. (Toronto time) on Nov. 12, 2010. The warrants may be exercised by notifying the warrant trustee between the first business day of any month and 5 p.m. (Toronto time) on the 10th business day of such month until the expiry time. Such warrants will be exercised effective as at 5 p.m. on the 10th business day of the applicable month. A fee of 15 cents per warrant will be payable by AIC Investment Services Inc., at the time a warrant is exercised, to the dealer whose client is exercising the warrant and 10 cents per warrant to the agents. The warrants will be governed by the terms of a warrant indenture between the fund and CIBC Mellon Trust Co. as trustee. The warrant indenture provides for appropriate adjustments to the warrants in the event of stock dividends, subdivisions, consolidations and other terms of the capital reorganization.
Registration of interests in, and transfers of units and the warrants, will be made only through the book-entry-only system of CDS Clearing and Depository Services Inc. Units and warrants must be purchased, transferred and surrendered for retraction only through a CDS participant. Beneficial owners of units and warrants will not have the right to receive physical certificates evidencing their ownership.
Additional information on the units and warrants can be found in the final prospectus of the fund dated Oct. 30, 2007, which is available at www.sedar.com. Capitalized terms not otherwise defined are as defined in the prospectus.
Units symbol: EPD.UN
Unit Cusip No.: 29879E 10 6
Unit trading currency: Canadian dollars
Warrant symbol: EPD.WT
Warrant Cusip No.: 29879E 11 4
Warrant trading currency: Canadian dollars
Temporary market-maker: Raymond James Ltd.
Other markets: None
Incorporation: The fund is a closed-end investment trust established under the laws of Ontario on Oct. 30, 2007.
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 an opportunity to diversify away from North America via exposure to European dividend-paying companies with strong credit ratings. The investment manager will invest in issuers that it believes have attractive dividend yields, strong earnings growth momentum and are in industries with high barriers to entry, supported by Europe's strengthening economic environment.
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 2009, the fund will annually determine and announce each February an indicative distribution amount for the following 12 months based upon the prevailing market conditions. The initial cash distribution to unitholders of record on Dec. 31, 2007, is anticipated to be payable on Jan. 15, 2008, and will be pro rated 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.
Initial public offering: Pursuant to the terms of the prospectus, up to 10 million units are being offered to the public at a price of $10 per unit 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 Inc., Laurentian Bank Securities Inc., Richardson Partners Financial Ltd. and Wellington West Capital Inc., as agents. In addition, the underwriters have been granted an overallotment option, exercisable in whole or in part for a period of 30 days following the closing of the offering, to purchase, at the offering price, a total of up to 15 per cent of the total number of units and 15 per cent of the total number of warrants. The units will separate into units and warrants immediately upon closing of the offering.
