Calgary (pcJ News Briefs) – Canoe EIT Income Fund (TSX: EIT.UN; EIT.PR.A) has closed the previously announced offering of 4,900,000 4.80% Cumulative Redeemable Series 1 Preferred units at $25.00 per unit for gross proceeds of $122,500,000.
The offering was made through a syndicate of underwriters led by Scotiabank and RBC Capital Markets which also included BMO Capital Markets, CIBC Capital Markets, National Bank Financial Inc., TD Securities Inc., Canaccord Genuity Corp., Industrial Alliance Securities Inc. and Manulife Securities Incorporated.
The fund has also granted the underwriters an option, exercisable at the offering price for a period of 30 days from today’s date, to purchase up to an additional 735,000 Series 1 Preferred units to cover over-allotments, if any.
Holders of the Series 1 Preferred units will be entitled to fixed cumulative preferential cash distributions of $1.20 per Series 1 Preferred unit per annum, as and when declared, which will accrue from the date of issue and will be payable quarterly on the 15th day of March, June, September and December in each year with the initial distribution, if declared, payable on June 15, 2017.
The Series 1 Preferred units, rated Pfd – 2 (high) by Dominion Bond Rating Service Limited, are listed for trading on the Toronto Stock Exchange under the symbol EIT.PR.A.
Canoe EIT Income Fund is actively managed and invests in a diversified portfolio of income- generating and capital growth-oriented securities listed primarily on the TSX. 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, an employee-owned investment management firm focused on building financial wealth for Canadians.