Faircourt Income Split Trust, a limited purpose investment trust, completed an initial public offering of 1.8 million units and 1.8 million 7.5 per cent preferred securities at $15 per unit and $10 per preferred security for total gross proceeds of $45 million. The deal closed on February 28, 2003. Pursuant to the exercise of an over-allotment option, Faircourt raised an additional $1.56 million on March 18. The syndicate of agents was led by CIBC World Markets Inc. and TD Securities Inc., and included BMO Nesbitt Burns Inc., National Bank Financial Inc., Canaccord Capital Corporation, Desjardins Securities Inc., Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd. and Yorkton Securities Inc. Net proceeds of the offering will be invested in a portfolio of Canadian income trusts and funds.
The trust was created using a dual security structure, consisting of the units and the preferred securities, to provide investors with greater ability to choose the tax character of distributions they will receive from the underlying income trust portfolio. An investment in the units maximizes the tax deferral available for non-registered accounts, while the preferred securities offer a highly-rated security with an attractive rate of interest for registered plans. The trust will invest its assets in securities of Canadian income funds. The manager of the trust is Faircourt Asset Management Inc and the investment advisor to the trust is Acuity Investment Management Inc.
Stikeman Elliott LLP acted for the trust and the manager of the trust, with a team that included Jennifer Northcote, Maurice Swan, Greg Hogan and Jill Lankin (securities/corporate) and Lianne Miller (tax). Borden Ladner Gervais LLP acted for the investment advisor, with a team that included Lynn McGrade and Leslie Erlich (securities/corporate) and Craig Webster (tax). McCarthy Tétrault LLP acted for the agents, with a team that included Ronald Schwass, Andrew Armstrong and Katherine Gurney (securities/corporate) and Nigel Johnston (tax).
The trust was created using a dual security structure, consisting of the units and the preferred securities, to provide investors with greater ability to choose the tax character of distributions they will receive from the underlying income trust portfolio. An investment in the units maximizes the tax deferral available for non-registered accounts, while the preferred securities offer a highly-rated security with an attractive rate of interest for registered plans. The trust will invest its assets in securities of Canadian income funds. The manager of the trust is Faircourt Asset Management Inc and the investment advisor to the trust is Acuity Investment Management Inc.
Stikeman Elliott LLP acted for the trust and the manager of the trust, with a team that included Jennifer Northcote, Maurice Swan, Greg Hogan and Jill Lankin (securities/corporate) and Lianne Miller (tax). Borden Ladner Gervais LLP acted for the investment advisor, with a team that included Lynn McGrade and Leslie Erlich (securities/corporate) and Craig Webster (tax). McCarthy Tétrault LLP acted for the agents, with a team that included Ronald Schwass, Andrew Armstrong and Katherine Gurney (securities/corporate) and Nigel Johnston (tax).
