Coastal Completes Offerings

On December 10, 2002, Coastal Value Fund Inc. completed a $102.5 million initial public offering of senior preferred shares and a concurrent $84.976 million private placement of capital shares. Coastal used the aggregate proceeds of these offerings to purchase a portfolio of securities of large-capitalization issuers, which Coastal’s management has identified as trading at a discount to their underlying business value (the portfolio). Coastal’s investment objectives are to provide a quarterly dividend of $0.375 per senior preferred share, to redeem the senior preferred shares on December 31, 2012, for their original offering of $25 per share, and to enable shareholders to participate in the capital appreciation of the portfolio. Scotia Capital Inc. led the syndicate of agents, which included TD Securities Inc., CIBC World Markets Inc., RBC Dominion Securities Inc., National Bank Financial Inc., Desjardins Securities Inc., Bieber Securities Inc., Dundee Securities Corporation, UBS Bunting Warburg Inc. and Wellington West Capital Inc.

Will Fung, Jules Lewy and Christopher Steeves (tax) and Danny Chan of Fraser Milner Casgrain LLP represented Coastal. Osler, Hoskin & Harcourt LLP acted for the agents, with a team that included Andrew Aziz and Andrew McGuffin (tax) and Dana Easthope.