CanBanc 8 Income Corp. Files Preliminary Prospectus
TORONTO, ONTARIO--(Marketwire - Oct. 31, 2012) - CanBanc 8 Income Corp. (the "Company") announces that it has filed a preliminary prospectus dated October 30, 2012 with the securities regulatory authorities of all of the Canadian provinces and territories for an initial public offering of shares (the "Shares") at $10 per Share.
The Company was created to invest in a portfolio (the "Portfolio") of common shares (the "Portfolio Shares") of the eight largest Canadian banks: Bank of Montreal; Canadian Imperial Bank of Commerce; Canadian Western Bank; Laurentian Bank of Canada; National Bank of Canada; Royal Bank of Canada; The Bank of Nova Scotia; and The Toronto-Dominion Bank (each, a "Bank", and collectively, the "Banks") on a market capitalization weighted basis. First Asset Investment Management Inc. (the "Manager" or "First Asset") intends each month to sell call options on approximately, and not more than, 25% of the common shares of each Bank held in the Portfolio in order to seek to earn attractive tax effective income from dividends and call option premiums, lower the overall volatility of returns associated with owning a portfolio of common shares of the Banks, and to generate capital appreciation for holders of Shares of the Company (the "Shareholders").
The objectives of the Company are to provide Shareholders with:
(a) quarterly distributions;
(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 set periodic distribution targets. Based on the Manager's current estimates, the initial distribution target for the Company is expected to be $0.15 per quarter ($0.60 per annum to yield 6.0% on the subscription price of $10 per Share).
First Asset is a Canadian wealth management company that manages and administers approximately $2.7 billion in assets.
The syndicate of agents for this offering is being led by CIBC, co-led by National Bank Financial Inc. and RBC Capital Markets, and includes BMO Capital Markets, Scotiabank, TD Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Desjardins Securities Inc., Dundee Securities Ltd., Macquarie Private Wealth Inc. and Manulife Securities Incorporated.
A preliminary short form prospectus containing important information relating to the Shares has been filed with securities commissions or similar authorities in all provinces of Canada. The preliminary short form prospectus is still subject to completion or amendment. Copies of the preliminary short form prospectus may be obtained from your registered financial advisor. There will not be any sale or any acceptance of an offer to buy the Shares until a receipt for the final prospectus has been issued.
FOR FURTHER INFORMATION PLEASE CONTACT:
416-642-1289 or 1-877-642-1289