CanBanc 8 Income Corp.: Closes Initial Public Offering
TORONTO, ONTARIO, Dec 19, 2012 (Menafn - MARKETWIRE via COMTEX) --CanBanc 8 Income Corp. (the "Company") announces theclosing of its initial public offering. Pursuant to the offering, theCompany issued 4 million equity shares (the "Shares") at 10 perShare, for gross proceeds of 40 million. The Shares are listed onthe Toronto Stock Exchange under the symbol CBF. The Company hasgranted the agents of the offering an over-allotment option toacquire up to 600,000 additional Shares at a price of 10 per Shareexercisable at any time during the next thirty days.
The Company will invest in a portfolio (the "Portfolio") of commonshares (the "Portfolio Shares") of the eight largest Canadian banks:Bank of Montreal; Canadian Imperial Bank of Commerce; CanadianWestern Bank; Laurentian Bank of Canada; National Bank of Canada;Royal Bank of Canada; The Bank of Nova Scotia; and TheToronto-Dominion Bank (each, a "Bank", and collectively, the "Banks")on a market capitalization weighted basis. First Asset InvestmentManagement Inc. (the "Manager" or "First Asset") intends each monthto sell call options on approximately, and not more than, 25% of thecommon shares of each Bank held in the Portfolio in order to seek toearn attractive tax effective income from dividends and call optionpremiums, lower the overall volatility of returns associated withowning a portfolio of common shares of the Banks, and to generatecapital appreciation for holders of Shares (the "Shareholders").
The objectives of the Company are to provide Shareholders with:
b.the opportunity for capital appreciation; and
c.lower overall volatility of Portfolio returns than would be experienced
by owning a portfolio of common shares of the Banks directly.
The Company will not have a fixed distribution, but intends to setperiodic distribution targets. Based on the Manager's currentestimates, the initial distribution target for the Company isexpected to be 0.15 per quarter (0.60 per annum to yield 6.0% onthe subscription price of 10 per Share).
First Asset is a Canadian wealth management company that manages andadministers approximately 2.6 billion in assets.
The syndicate of agents for this offering was led by CIBC, co-led byNational Bank Financial Inc. and RBC Capital Markets, and includedBMO Capital Markets, Scotiabank, TD Securities Inc., CanaccordGenuity Corp., GMP Securities L.P., Raymond James Ltd., DesjardinsSecurities Inc., Dundee Securities Ltd., Macquarie Private WealthInc. and Manulife Securities Incorporated.
416-642-1289 or 1-877-642-1289
SOURCE: CanBanc 8 Income Corp. and First Asset
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