On February 14, 2003, Skylon Global Capital Yield Trust II (the trust) completed an initial public offering in Canada of 5.2 million units of the trust raising gross proceeds of $130 million. The trust’s investment objectives are: (i) to provide unitholders with a stable stream of monthly distributions consisting of capital gains and return of capital of $0.1510 per unit ($1.81 per annum to yield 7.25 per cent on the subscription price of $25 per unit); and (ii) to endeavour to preserve and enhance the net asset value of the trust in order to return at least the original subscription price of the units ($25 per unit) to unitholders on or about July 31, 2012. Skylon Advisors Inc. (Skylon) manages the trust.
In order to meet its investment objectives, the trust invested the net proceeds of the offering in a portfolio of common shares of Canadian public companies (the common share portfolio). The trust then entered into forward purchase and sale agreements with TD Global Finance, a member of the TD Bank Financial Group, and Royal Bank of Canada pursuant to which the counterparties agreed to pay to the trust on or about July 31, 2012 as the purchase price for the common share portfolio an amount equal to 100 per cent of the redemption proceeds of a corresponding number of units of Skylon Global High Yield Trust (the global high yield trust).
Skylon Global Capital Yield Trust is an investment trust managed by Skylon, which also provides investors with exposure to the return on the global high yield trust by virtue of forward agreements. The initial public offering of 1.68 million units of Skylon Global Capital Yield Trust for gross proceeds of $42 million was completed on August 23, 2002.
The global high yield trust is a special purpose investment trust that acquired an investment portfolio with a net asset value following the completion of the offering by the trust of approximately $166 million consisting primarily of high yield instruments including corporate debt, emerging market debt and other high yield instruments. Newport Beach, California-based Pacific Investment Management Company LLC (PIMCO), has been retained as investment sub-advisor by Skylon to provide investment advisory and portfolio management services to the global high yield trust.
Skylon, the trust, the Skylon Global Capital Yield Trust and the global high yield trust were represented by McMillan Binch LLP, with a team that included Margaret McNee, Kimberly Poster and Cindy Wan (securities), Mark Lobsinger and David Wentzell (tax) and Tim Baron (derivatives). Andrew Aziz and Alison Wilkie (securities) and Andrew McGuffin (tax) of Osler, Hoskin & Harcourt LLP represented the underwriting syndicate for the trust, led by TD Securities Inc., CIBC World Markets Inc. and RBC Dominion Securities Inc., and for the Skylon Global Capital Yield Trust led by TD Securities and RBC Dominion Securities. Paul Findlay of Borden Ladner Gervais LLP represented PIMCO.
In order to meet its investment objectives, the trust invested the net proceeds of the offering in a portfolio of common shares of Canadian public companies (the common share portfolio). The trust then entered into forward purchase and sale agreements with TD Global Finance, a member of the TD Bank Financial Group, and Royal Bank of Canada pursuant to which the counterparties agreed to pay to the trust on or about July 31, 2012 as the purchase price for the common share portfolio an amount equal to 100 per cent of the redemption proceeds of a corresponding number of units of Skylon Global High Yield Trust (the global high yield trust).
Skylon Global Capital Yield Trust is an investment trust managed by Skylon, which also provides investors with exposure to the return on the global high yield trust by virtue of forward agreements. The initial public offering of 1.68 million units of Skylon Global Capital Yield Trust for gross proceeds of $42 million was completed on August 23, 2002.
The global high yield trust is a special purpose investment trust that acquired an investment portfolio with a net asset value following the completion of the offering by the trust of approximately $166 million consisting primarily of high yield instruments including corporate debt, emerging market debt and other high yield instruments. Newport Beach, California-based Pacific Investment Management Company LLC (PIMCO), has been retained as investment sub-advisor by Skylon to provide investment advisory and portfolio management services to the global high yield trust.
Skylon, the trust, the Skylon Global Capital Yield Trust and the global high yield trust were represented by McMillan Binch LLP, with a team that included Margaret McNee, Kimberly Poster and Cindy Wan (securities), Mark Lobsinger and David Wentzell (tax) and Tim Baron (derivatives). Andrew Aziz and Alison Wilkie (securities) and Andrew McGuffin (tax) of Osler, Hoskin & Harcourt LLP represented the underwriting syndicate for the trust, led by TD Securities Inc., CIBC World Markets Inc. and RBC Dominion Securities Inc., and for the Skylon Global Capital Yield Trust led by TD Securities and RBC Dominion Securities. Paul Findlay of Borden Ladner Gervais LLP represented PIMCO.
