Faircourt Asset Management has announced:
the final terms of the distribution to its unitholders of rights (the “Rights”) exercisable for units (“Units”) of the Trust (the “Rights Offering”). Each Unit consists of one trust unit of the Trust (a “Trust Unit”) and one transferable warrant to acquire a Trust Unit (a “Warrant”). Each Warrant entitles the holder thereof to purchase one Trust Unit on, and only on, June 25, 2010 at a subscription price of $4.00. The distribution is being made pursuant to a short form prospectus dated July 14, 2009. TD Securities Inc. is the dealer manager for the Rights Offering.
Under the Rights Offering, holders of the Trust Units as of the close of business on July 22, 2009 received one Right for each Trust Unit held as of the record date. Each Right will entitle the holder thereof to purchase one Unit at a subscription price of $2.30. The Rights will expire at 4:00 pm (Toronto time) on August 27, 2009.
The Rights Offering included an additional subscription privilege under which holders of Rights who fully exercise their Rights will be entitled to subscribe for additional Units, if available, that were not otherwise subscribed for in the Rights Offering.
The Trust will use the net proceeds of this issue to increase capital for investment.
the Trust had 5,344,946 Trust Units Fund Performance outstanding and trading at $0.80 per Trust Unit, a discount to the underlying NAV of 59%. Closed end trusts may trade above, at or below their NAV per unit.
As at December 31, 2008, the Trust had 9,964,308 Preferred Securities outstanding representing a total liability of $99.64 million.
Income coverage of the FIG.PR.A distribution in 2008 was 1.4-:1; asset coverage at year-end was originally reported as 1.1-:1, and adjusted later. Assuming there have been no changes in outstanding shares, asset coverage (from the NAV provided) is currently 1.2+:1 before giving effect to any rights subscriptions.
FIG.PR.A is tracked by HIMIPref™ but was relegated to the ‘Scraps’ index as part of the February 2009 rebalancing on credit concerns.