News Release
Claymore 1-5 Yr Laddered Corporate Bond ETF To Trade On Toronto Stock Exchange
Claymore 1-5 Yr Laddered Corporate Bond ETF (the "Claymore ETF") - An application has been granted for the original listing in the Industrial category of 400,000 common units (the "Common Units") and 100,000 advisor class units (the "Advisor Class Units") of the Claymore ETF (collectively, the "Units"), all of which will be issued and outstanding, upon the completion of an initial public offering.
Listing of the Units will become effective at 5:01 p.m. on Tuesday, February 24, 2009 in anticipation of the prospectus offering closing on Wednesday, February 25, 2009. The Units will be posted for trading at the opening on February 25, 2009.
The Claymore ETF is authorized to issue an unlimited number of redeemable, transferable Units each of which represents an undivided interest in the assets of the Claymore ETF. Units of the Claymore ETF are being issued and sold on a continuous basis and there is no maximum number that may be issued.
The Claymore ETF is a trust established by Claymore Investments, Inc. ("Claymore" or the "Manager") with the investment objective of replicating, to the extent possible, the performance of the DEX 1-5 Year Laddered Corporate Bond Index (the "Index").
The registration and transfer of Units will be effected through the book-entry only system administered by CDS Clearing and Depository Services Inc. ("CDS"). Unitholders of the Claymore ETF will not have the right to receive physical certificates evidencing their ownership of the Units.
Additional information on the Units may be found in the final prospectus of the Claymore ETF dated November 24, 2008 and the amendment to the Prospectus dated January 23, 2009 (collectively the "Prospectus") which is available at www.SEDAR.com. Capitalized terms not otherwise defined below are as defined in the Prospectus.
Common Units
Stock Symbol: "CBO"
CUSIP: 18382N 10 9
Currency: CDN$
Advisor Class Units
Stock Symbol: "CBO.A"
CUSIP: 18382N 20 8
Currency: CDN$
Designated Market Maker: BMO Nesbitt Burns Inc.
Other Markets: None
Head Office: 200 University Avenue, 13th Floor,
Toronto, Ontario
M5H 3C6
Email Address: info@claymoreinvestments.ca
Website Address: www.claymoreinvestments.ca
Head Office Telephone Number: (416) 813-2000
Toll Free Number: (866) 417-4640
Fax Number: (416) 813-2020
Investor Relations: Sara Beazely
Tel: (866) 417-4640
sbeazely@claymoreinvestments.ca
Manager/Trustee: Claymore Investments, Inc.
Transfer Agent & Registrar: Equity Transfer & Trust Company at its principal office in Toronto.
Chief Financial Officer & Director: Bruce Albelda
Secretary: Kevin M. Robinson
Fiscal Year End: December 31
Incorporation: The Claymore ETF was established under the laws of the Province of Ontario on July 15, 2008 pursuant to an amended and restated master declaration of trust dated January 23, 2009 by Claymore Investments, Inc., as trustee and manager.
Nature of Business: The Claymore ETF has been designed to replicate, to the extent possible, the performance of the Index. The Claymore ETF seeks investment results that correspond generally to the price and yield (before fees and expenses) of the Index. The investment strategy of the Claymore ETF is to invest in and hold constituent securities of the Index in substantially the same proportion as they are reflected in the Index. The Claymore ETF has been structured to provide exposure to the staggered maturity dates of the bonds in the Index, which range from one to five years.
Common and Advisor Class: The only difference between Common Units (CBO) and Advisor Class Units (CBO.A) is the service fee component of the management fees payable by the Claymore ETF in respect of the Units of each class. The Claymore ETF will pay the Manager a monthly management fee based on one-twelfth of the net asset value ("NAV") of the Claymore ETF at month end plus, in respect of the Advisor Class Units, an additional amount based on one- quarter of the NAV per Advisor Class Unit of the Claymore ETF at the end of each calendar quarter, plus applicable taxes. The monthly management fee will be paid monthly in arrears and the additional amount will be paid quarterly at the end of each calendar quarter. The annual management fee is 0.25% of NAV of the Claymore ETF and the additional amount applicable to Advisor Class Units is 0.50% of NAV per Advisor Class Unit (total 0.75%).
Conversion of Units: A Unitholder of the ETF may convert Advisor Class Units into Common Units or Common Units into Advisor Class Units by delivering a notice and surrendering such units by 5:00 p.m. (Toronto time) on any Trading Day and any such Units so surrendered shall be converted on such Trading Day. For each Advisor Class Unit so converted, a holder will receive a number of Common Units equal to the Net Asset Value per unit of an Advisor Class Unit as of the Trading Day divided by the Net Asset Value per Common Unit as of the Trading Day. For each Common Unit so converted, a holder will receive a number of Advisor Class Units equal to the Net Asset Value per unit of a Common Unit as of the Trading Day divided by the Net Asset Value per Advisor Class Unit as of the Trading Day.
Distributions: Cash distributions on Units of the Claymore ETF are expected to be made at least quarterly, if at all, and are expected to consist primarily of dividends or distributions received by the Claymore ETF less the expenses of the Claymore ETF. To the extent that the expenses of a Claymore ETF exceed the income generated by such Claymore ETF in any given quarter, no quarterly distribution will be paid. As a result of the higher management fees on the Advisor Class Units, any such cash distributions on the Advisor Class Units are expected to be less than the distributions payable on the Common Units.
Initial Issuance of Units: Pursuant to the Prospectus, 400,000 Common Units and 100,000 Advisor Class Units of the Claymore ETF will be issued at a subscription price of $20.00 per Unit. Units of the Claymore ETF are being issued and sold on a continuous distribution basis.
