On June 25, 2002, Commercial and Industrial Securities Income Trust (COINS) an investment trust, completed an initial public offering of 3.05 million units at $20 per unit for gross proceeds of $61 million. On July 19, 2002, the agents for the offering exercised the over-allotment option in respect of 164,385 units for additional gross proceeds of $3.3 million. The agents for the offering have an over-allotment option in respect of 457,500 units. COINS’s investment objectives are to provide unitholders with a stable stream of monthly distributions targeted to be $0.15 per unit (9 per cent per annum on the original issue price), and to preserve the value of the trust’s portfolio in order to return the original issue price of $20 per unit to the unitholders upon termination of the trust. COINS’s portfolio will consist primarily of units of commercial and industrial income trusts and, to a lesser extent, oil and gas royalty and income trusts.
National Bank Financial Inc. and CIBC World Markets Inc. co-led the offering with a syndicate that included BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Dundee Securities Corporation, Yorkton Securities Inc., Desjardins Securities Inc., Raymond James Ltd., Research Capital Corporation and Trilon Securities Corporation.
Borden Ladner Gervais LLP acted for COINS, with a team comprised of Paul Findlay, Michael De Cosimo and Daniel Westreich (securities/corporate) and Craig Webster and Heather Cormier (tax). Blake, Cassels & Graydon LLP acted for the agents, with a team comprised of Jeff Glass and Anoop Dogra (securities/corporate) and Ron Richler (tax).