Faircourt Asset Management Inc., has announced (although not yet on their website):
it has filed a preliminary short form prospectus in each of the provinces of Canada with respect to an offering of 6.00% preferred securities (“Preferred Securities”) and trust units (“Units”) of the Trust (the “Offering”). The syndicate of underwriters will be co-led by National Bank Financial Inc., CIBC, BMO Nesbitt Burns Inc. and TD Securities Inc. and will include Canaccord Genuity Corp., GMP Securities L.P., Raymond James, Desjardins Securities Inc., Echelon Wealth Partners, Industrial Alliance Securities Inc., Mackie Research Capital Corporation and Manulife Securities.
The Preferred Securities will be offered at a price of $10.08 per Preferred Security to yield 6.00% on the issue price and will form part of the same series as the Trust’s existing 6.00% preferred securities. The Preferred Securities have been rated Pfd-3 (low) by DBRS Limited. The Units will be offered at a price of $6.50 per Unit.
The sales period of this overnight Offering will end at 9:00 a.m. ET on November 3, 2017. The Offering is expected to close on or about November 17, 2017 and is subject to certain closing conditions including approval by the TSX.
A preliminary prospectus containing important information relating to the Offering has been filed with securities commissions or similar authorities in each of the provinces of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from a financial advisor or at www.sedar.com under the Trust’s profile. There will not be any sale or any acceptance of an offer to buy the Preferred Securities or the Units until a receipt for the final prospectus has been issued.
The NAV of the Capital Units was 5.73 on October 27, but this does not mean that the Whole Unit NAV is 15.73; the fund has different numbers of preferreds and capital units outstanding.
Performance for the fund has not been stellar:
| |
Since Merger |
Past 5 Years |
Past 3 Years |
Past 1 Year |
| Faircourt Split Trust |
5.41% |
3.88% |
3.85% |
19.24% |
| Blended Index |
10.18% |
12.11% |
10.23% |
17.18% |
| S&P/TSX Composite Total Return Index |
6.52% |
8.24% |
7.06% |
21.08% |
| S&P 500 – CDN$ Total Return Index |
18.73% |
21.14% |
17.64% |
8.09% |
| The Blended Index for the Trust is comprised of a 70% weight in the S&P/TSX Composite Total Return Index and a 30% weight in the S&P 500 – CDN$ Total Return Index. |
FCS.PR.C is a SplitShare paying 6% p.a. (interest) on a par value of $10, maturing 2019-6-30, that commenced trading 2014-12-30. It is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns. It was last mentioned in connection with a partial redemption in 2016.
Update, 2017-11-3: They raised about $5-million:
Faircourt Asset Management Inc., as manager of Faircourt Split Trust (the “Trust”) (TSX:FCS.UN)(TSX:FCS.PR.C) is pleased to announce it has completed its previously announced overnight marketing of 302,100 6.00% preferred securities (“Preferred Securities”) and 302,100 trust units (“Units”) of the Trust (the “Offering”). Total proceeds of the Offering are expected to be approximately $5 million. The syndicate of underwriters is being co-led by National Bank Financial Inc., CIBC, BMO Nesbitt Burns Inc. and TD Securities Inc. and includes Canaccord Genuity Corp., GMP Securities L.P., Raymond James, Desjardins Securities Inc., Echelon Wealth Partners, Industrial Alliance Securities Inc., Mackie Research Capital Corporation and Manulife Securities.
The Preferred Securities were offered at a price of $10.08 per Preferred Security to yield 6.00% on the issue price and will form part of the same series as the Trust’s existing 6.00% preferred securities. The Preferred Securities have been rated Pfd-3 (low) by DBRS Limited. The Units were offered at a price of $6.50 per Unit.
The sales period of the overnight marketing has now ended.
The Offering is expected to close on or about November 17, 2017 and is subject to certain closing conditions including approval by the TSX.
They tout this as a success, but it seems like a pretty small amount for a prospectussed issue with underwriters and all.
This entry was posted on Thursday, November 2nd, 2017 at 7:04 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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FCS.PR.C To Get Bigger
Faircourt Asset Management Inc., has announced (although not yet on their website):
The NAV of the Capital Units was 5.73 on October 27, but this does not mean that the Whole Unit NAV is 15.73; the fund has different numbers of preferreds and capital units outstanding.
Performance for the fund has not been stellar:
FCS.PR.C is a SplitShare paying 6% p.a. (interest) on a par value of $10, maturing 2019-6-30, that commenced trading 2014-12-30. It is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns. It was last mentioned in connection with a partial redemption in 2016.
Update, 2017-11-3: They raised about $5-million:
They tout this as a success, but it seems like a pretty small amount for a prospectussed issue with underwriters and all.
This entry was posted on Thursday, November 2nd, 2017 at 7:04 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.