U.S. Housing Recovery Fund To Trade On Toronto Stock Exchange
U.S. Housing Recovery Fund (the “Fund”) - An application has been granted for the original listing in the Industrial category of up to 11,500,000 Class A Units of the Fund, of which up to a maximum of 10,000,000 Class A Units will be issued and outstanding and up to 1,500,000 Class A Units will be reserved for issuance upon completion of an initial public offering (the “Offering”).
Listing of the Class A Units will become effective at 5:01 p.m. on Friday, November 2, 2012, in anticipation of the Offering closing on Monday, November 5, 2012. The Class A Units, other than those which have not been distributed to the public, will be posted for trading at the opening on November 5, 2012.
Registration of interests in and transfers of the Class A Units will be made only through the book-entry only system maintained by CDS Clearing and Depository Services Inc. (“CDS”). Class A Units must be purchased, transferred and surrendered for redemption through a CDS Participant. Upon the purchase of Class A Units, the owner will receive only a customer confirmation.
Additional information on the Class A Units may be found in Fund's final prospectus dated October 3, 2012 (the “Prospectus”), which is available at www.SEDAR.com. Capitalized terms not otherwise defined are as defined in the Prospectus.
Stock Symbol: “USH.UN”
CUSIP: 90346D 10 5
Trading Currency: CDN$
Market Maker:RBC Capital Markets
Telephone Number:(416) 359-4000
Fax Number:(416) 359-4311
Chief Financial Officer:David C. Ferguson
Corporate SecretaryMichelle Magnaye
Investor Relations:Gloria Lau
Portfolio Manager: Connor, Clark & Lunn Capital Markets Inc.
Administrator:BMO Nesbitt Burns Inc.
Incorporation:The Fund is a non-redeemable investment fund established as a trust under the laws of the Province of Ontario pursuant to a declaration of trust dated October 3, 2012.
Fiscal Year End:December 31
Nature of Business:The Fund has been created to provide investors with an opportunity to gain exposure to the anticipated recovery in the U.S. housing sector. The net proceeds of the Offering will be invested in a portfolio of equity securities of 30 companies operating in sectors that have direct or indirect exposure to the U.S. housing sector, including homebuilders, building products, home improvement and houseware and appliances.
Transfer Agent &
Registrar:CIBC Mellon Trust Company, at its principal offices in Toronto.
Distributions:The Fund intends to pay monthly distributions to Unitholders commencing in December 2012. Distributions are initially targeted to be $0.05 per Unit per month ($0.60 per Unit per annum) representing a yield of 6.0% per annum based on the original issue price of $10.00 per Unit. The Fund will not have a fixed distribution but the Administrator will annually determine in November of each year an indicative distribution amount for the following year based upon the prevailing market conditions and the estimate by the Portfolio Manager of distributable cash flow for the year. The Fund intends to make such distributions to Unitholders of record on the last business day of each month. Distributions will be paid on a business day designated by the Administrator that will be no later than the fifteenth day of the following month.
Class F Units:In addition to the Class A Units, the Fund is offering Class F Units under the Prospectus. The Class F Units are designed for fee-based accounts and will not be listed on a stock exchange. A holder of Class F Units may convert such Class F Units into Class A Units on a monthly basis and it is expected that liquidity for the Class F Units will be obtained primarily by means of conversion into Class A Units and the sale of such Class A Units. Class F Units may be converted in any month on the first business day of such month (“Conversion Date”) by delivering a notice and surrendering such Class F Units by 3:00 p.m. (Toronto time) at least five business days prior to the applicable Conversion Date.
For each Class F Unit so converted, a holder will receive that number of Class A Units equal to the NAV per Class F Unit as of the close of trading on the business day immediately preceding the Conversion Date divided by the NAV per Class A Unit as of the close of trading on the business day immediately preceding the Conversion Date. No fraction of a Class A Unit will be issued upon any conversion of Class F Units and any fractional amounts will be rounded down to the nearest whole number of Class A Units.
Termination:Subject to an Extraordinary Resolution of Unitholders extending the term of the Fund, the Fund will terminate on October 31, 2017. However, the Administrator may, in its discretion, on 60 days' notice to Unitholders, terminate the Fund without the approval of Unitholders if, in the opinion of the Administrator, the NAV of the Fund is reduced as a result of redemptions of Units or otherwise so that it is no longer economically feasible to continue the Fund or the Administrator determines to terminate the Fund in connection with a Permitted Merger. Upon termination, the net assets of the Fund will be distributed to Unitholders on a pro rata basis based on the NAV of the classes of Units.
Public Offering:Pursuant to the terms of the Prospectus, up to a maximum of 10,000,000 Class A Units and/or Class F Units (unlisted) are being offered to the public by BMO Nesbitt Burns Inc., CIBC World Markets Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., Macquarie Private Wealth Inc., Raymond James Ltd., Desjardins Securities Inc. and Mackie Research Capital Corporation, as agents, at a price of $10.00 per Unit.