News Release
O’Leary Global Income Opportunities Fund To Trade On Toronto Stock Exchange
O'Leary Global Income Opportunities Fund (the "Fund") - An application has been granted for the original listing in the Industrial category of up to 14,375,000 combined units (the "Combined Units") of the Fund, of which up to 12,500,000 Combined Units will be issued and outstanding, and up to 1,875,000 Combined Units will be reserved for issuance upon completion of an initial public offering.
Listing of the Combined Units will become effective at 5:01 p.m. on Thursday, February 26, 2009, in anticipation of the offering closing on Friday, February 27, 2009. The Combined Units will be posted for trading at the opening on Friday, February 27, 2009.
At a future date to be announced by Toronto Stock Exchange ("TSX"), each Combined Unit will separate into one transferable trust unit (a "Trust Unit") and one trust unit purchase warrant (a "Warrant"). The Combined Units will separate into Trust Units and Warrants upon the earlier of the closing of the over-allotment option and the 30th day following the closing of the offering. Each Warrant entitles the holder to purchase one Trust Unit at a subscription price of $12.00 on or before 5:00 p.m. (Toronto time) on March 31, 2010. Warrants not exercised by the expiry time will be void and of no value.
Upon separation of the Combined Units, the Trust Units and the Warrants will be listed on TSX.
The offering will be conducted through the book-based system; accordingly, a purchaser of Combined Units will receive a customer confirmation from the registered dealer from or through which the Combined Units are purchased.
Additional information on the Combined Units, Trust Units and Warrants can be found in the Fund's final prospectus dated January 29, 2009 (the "Prospectus"), which is available at www.SEDAR.com. Capitalized terms not otherwise defined are as defined in the Prospectus.
Stock Symbol: "OGO.A"
CUSIP: 67088L 10 7
Trading Currency: CDN$
Temporary Market Maker: Research Capital Corporation
Other Markets: None
Head Office Address: 1010 Sherbrooke Street West
Suite 2310
Montreal, Quebec
H3A 2R7
Head Office Telephone Number: (514) 849-2007
Fax Number: (514) 849-0065
Toll Free: 877-849-2004
Email Address: info@stantonasset.com
Website Address: www.stantonasset.com
Manager: O'Leary Funds Management LP
Portfolio Advisor: Stanton Asset Management Inc.
Custodian: RBC Dexia Investor Services Trust
Investor Relations: Connnor O'Brien
O'Leary Funds Management LP
Tel: 514-849-2007
E-mail: info@stantonasset.com
Chief Financial Officer and Secretary of the Manager: Louise Anne Poirier
Incorporation: The Fund is an investment trust established under the laws of the Province of Ontario pursuant to a declaration of trust dated January 29, 2009.
Fiscal Year End: December 31
Nature of Business: The Fund has been created to invest globally primarily in publicly-traded investment grade corporate bonds, convertible debt securities, preferred shares and dividend-paying equity securities of issuers having market capitalizations of at least $1 billion.
Transfer Agent & Registrar: Computershare Investor Services Inc. at its principal office in Toronto.
Distributions: The Fund intends to make monthly distributions to unitholders of record on the last business day of each month. Distributions will be paid on a business day designated by the Manager that will be no later than the 15th day of the following month. The initial monthly distributions are targeted to be $0.06 per Trust Unit ($0.72 per annum representing an annual cash distribution of 6.0 % based on the $12.00 per unit issue price). The Fund will not have a fixed monthly distribution but will determine and announce each January, commencing in 2010, an expected distribution amount for the following twelve months. The initial cash distribution is anticipated to be payable on April 15, 2009 to unitholders of record on March 31, 2009.
Based on its initial anticipated composition, the Portfolio is expected to generate interest, distribution and dividend income of approximately 8.77%, net of applicable withholding taxes, per Trust Unit per annum, which, after deduction of expenses, will be sufficient to fund the monthly distributions at the initially targeted level. If the return on the Portfolio (including net realized capital gains from the sale of securities) is less than the amount necessary to fund the monthly distributions, the Manager will return a portion of the capital of the Fund to unitholders to ensure the distribution is paid and, accordingly, NAV per Trust Unit of each class will be reduced.
If the Fund's net income for tax purposes, including net realized capital gains, for any year exceeds the aggregate amount of the regular monthly distributions made in the year to unitholders, the Fund will also be required to pay one or more special distributions in such year to unitholders as is necessary to ensure that the Fund will not be liable for income tax on such amounts under the Tax Act (after taking into account all available deductions, credits and refunds).
There can be no assurance given as to the amount of targeted distributions in the future. There is no assurance that the Fund will meet its investment objectives.
Redemption: Annual Redemption: Commencing in 2010, Trust Units may be surrendered annually for redemption during the period from June 15th until 5:00 p.m. (Toronto time) on the 20th business day before the last business day in July in each year (the "Notice Period") subject to the Fund's right to suspend redemptions in certain circumstances. Trust Units surrendered for redemption during the Notice Period will be redeemed on the second last business day of July of each year (the "Annual Redemption Date") and the unitholder will receive payment on or before the 15th day following the Annual Redemption Date. Redeeming unitholders will receive a redemption price per Trust Unit equal to NAV per Trust Unit determined as of the Annual Redemption Date, less any costs and expenses incurred by the Fund in order to fund such redemption.
Monthly Redemption: Trust Units may be surrendered for redemption in any month. Trust Units properly surrendered for redemption by a unitholder prior to 5:00 p.m. (Toronto time) on the 10th business day before the last business day of a month will be redeemed on the second last day of that month ("Monthly Redemption Date") and the unitholder will receive payment on or before the 15th day following such Monthly Redemption Date, subject to the Fund's right to suspend redemptions in certain circumstances. Commencing in 2010, unitholders depositing Trust Units subsequent to June 15th and prior to 5:00 p.m. (Toronto Time) on the 20th business day before the last business day in July will receive the Annual Redemption Amount. A unitholder who properly surrenders a Trust Unit for redemption will receive the amount, if any, equal to the lesser of (A) 95% of the weighted average trading price of the Trust Units on TSX during the 15 trading days preceding the applicable Monthly Redemption Date, and (B) the "closing market price" of the Trust Units on the principal market on which the Trust Units are quoted for trading on the applicable Monthly Redemption Date.
Initial Public Offering: Pursuant to the terms of the Prospectus, a maximum of 12,500,000 Combined Units at a price of $12.00 per Combined Unit are being offered to the public by CIBC World Markets Inc., RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., Scotia Capital Inc., National Bank Financial Inc., Blackmont Capital Inc., Wellington West Capital Markets Inc., Canaccord Capital Corporation, Dundee Securities Corporation, HSBC Securities (Canada) Inc. and Raymond James Ltd. as agents. In addition, the agents have 30 days from closing to exercise an over-allotment option to purchase up to 15% of the aggregate number of Combined Units issued on closing at a price of $12.00 per Combined Unit.
