First Trust fund registers IPO for investing in floating-rate loans

By Susanna Moon

Chicago, Aug. 26 - First Trust Senior Loan Fund filed a preliminary prospectus to sell units in an initial public offering, according to a press release from fund manager First Defined Portfolio Management Co.

The fund is a closed-end investment trust that will invest in a portfolio composed of senior secured floating-rate corporate loans of non-investment-grade North American borrowers.

The units will be offered at C$10.00 each.

The syndicate of agents is being co-led by BMO Capital Markets, CIBC World Markets Inc., RBC Capital Markets and TD Securities Inc. and includes GMP Securities LP, National Bank Financial Inc., Scotia Capital Inc., HSBC Securities (Canada) Inc., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., Macquarie Private Wealth Inc., Mackie Research Capital Corp., Manulife Securities Inc. and MGI Securities Inc.

The fund's initial distribution target is expected to be C$0.04667 per unit per month, representing an initial yield on the unit issue price of 5.6% per year.

First Defined Portfolio is the Toronto-based manager and trustee. First Trust Advisors LP is the Chicago-based portfolio adviser. First Trust Portfolios Canada is based in Toronto.

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