North American Preferred Share Fund raises C$74 million in IPO

By Toni Weeks

San Luis Obispo, Calif., May 8 - Propel Capital Corp. announced that the North American Preferred Share Fund has closed its initial public offering, raising about C$74 million. Propel is the Toronto-based manager and promoter of the fund.

The fund seeks to provide unitholders with stable monthly cash distributions and preservation of capital by investing in an actively managed portfolio consisting primarily of Canadian and U.S. preferred shares.

The fund issued 2.96 million transferable trust units at C$25.00 per unit. There is a 30-day, 15% over-allotment option.

The fund's distributions are initially targeted to be 5.5% per year, which equates to C$0.1146 per unit per month or C$1.375 per year.

The syndicate of underwriters was led by CIBC, National Bank Financial Inc. and RBC Capital Markets and included BMO Capital Markets, GMP Securities LP, Scotiabank, TD Securities Inc., Macquarie Private Wealth Inc., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., Dundee Securities Ltd. and Manulife Securities Inc.

Fiera Capital Corp. will provide portfolio management services to the fund.

The units are listed on the Toronto Stock Exchange under the symbol "NPF.UN"

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