INDEXPLUS INCOME FUND closes $345 million IPO
Client
Middlefield Securities Limited and INDEXPLUS Income Fund
On August 15, 2003, Fasken Martineau and McCarthy Tétrault overcame the great black-out of 2003 to close the $325 million initial public offering of INDEXPLUS INCOME FUND, a closed-end investment trust. On September 4, 2003, INDEXPLUS raised additional gross proceeds of $20 million on the exercise of an over-allotment option. The investment objectives of the trust are to provide unitholders with high levels of monthly cash distributions, to outperform the S&P/TSX Capped Income Trust Index (which INDEXPLUS partially tracks) on a total return basis over the life of the trust and to return at least the original issue price of units to unitholders upon its termination. The net proceeds of the offering will be invested in a broadly diversified portfolio of securities, up to 80% of which will track the S&P/TSX Capped Income Trust Index to the extent possible and the remainder of which will be actively managed and invested in units of income trusts and other high-yielding equity-based securities. The co-advisors to INDEXPLUS are Middlefield Securities Limited and Guardian Capital Inc., who will be responsible for providing investment advice to the actively managed portion of the trust's portfolio. The units of INDEXPLUS were listed on the Toronto Stock Exchange at closing.
CIBC World Markets Inc. and RBC Capital Markets Inc. acted as co-lead agents of the offering. The other syndicate members were TD Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Desjardins Securities Inc., Dundee Securities Corporation, First Associates Investments Inc., Middlefield Securities Limited, Raymond James Ltd., Wellington West Capital Inc., Acadian Securities Incorporated and Research Capital Corporation.
INDEXPLUS and Middlefield were represented by the Toronto office of Fasken Martineau DuMoulin LLP with a team comprised of Stephen Erlichman, John Sabetti and Jeffrey Klam (securities) and Kathleen Hanly and Mitchell Thaw (tax).
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