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Client Work

Canadian Investment Grade Preferred Share Fund completes US$60 million IPO

Fasken
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Overview

Client

Various Clients

Investment Grade Managed Duration Income Fund (P2L) completed its initial public offering of units at $10 per unit in December 2016 raising over $60 million of proceeds. The Fund’s investment objectives are (i) provide holders of Units with monthly cash distributions; and (ii) maximize the total return to Unitholders over time, by investing an actively managed portfolio comprised primarily of preferred shares of Canadian issuers. Purpose Investments Inc. is the manager of the Fund. The Units have been assigned a rating of P-2 (low) by Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. The Fund uses the Unit Traded Fund (UTF) structure which has been developed to accomplish two goals, namely (a) to enable the Fund to invest virtually all of the gross proceeds from the offering in the investment portfolio, and (b) to encourage the Fund’s Class T Units to trade in the market at a price not less than 98.50% of their net asset value throughout the life of the Fund. Fasken Martineau advised the issuer and the syndicate of agents, with a team that included John Kruk and Jean-Pierre Chamberland (investment funds and capital markets) and Mitchell Thaw (tax).

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