PrefBlog

Faircourt Asset Management has announced:

that the Trust has received a receipt for the final short form prospectus in each of the provinces of Canada in connection with the previously announced distribution of rights to its unitholders (the “Rights Offering”).

Under the Rights Offering, holders of units of the Trust as of November 25, 2008 (the “Record Date”) will receive one right for each trust unit held. Each right will entitle the holder thereof to purchase one trust unit at a price (the “Subscription Price”) of $3.00 per trust unit, being 86.0% of the net asset value of a trust unit as at November 14, 2008 and 93.2% of the volume weighted average price of a trust unit on the Toronto Stock Exchange (the “TSX”) during the five trading days ended November 14, 2008 (both rounded to the nearest cent). The rights may be exercised for a period commencing on November 26, 2008 and ending at 4:00pm (Toronto time) on December 19, 2008.

The Rights will be listed on the TSX under the symbol FIG.RT and will commence trading on November 21, 2008.

Each holder of rights who subscribed for all of the trust units to which the holder is entitled under the basis subscription privilege may subscribe for any number of additional trust units, if available, at a price equal to the Subscription Price for each additional trust unit, subject to
availability.

The Trust will use the net proceeds of this issue to increase capital for investment and reduce leverage associated with the preferred securities of the Trust.

The NAV of the Fund’s Capital Units was $3.07 as of November 17, and there were 0.71 Capital Units per Preferred. Successful completion of the entire offering – by no means a given – would imply asset coverage of 1.4+:1 for the preferreds – still not very good!

This entry was posted on Tuesday, November 18th, 2008 at 7:07 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.