PrefBlog

Faircourt Asset Management has announced:

that the [Faircourt Income & Growth Split] Trust has completed its previously announced distribution to its unitholders of 4,903,305 rights (the “Rights”) exercisable for units (“Units”) of the Trust (the “Rights Offering”). All 4,903,305 Rights issued pursuant to the Rights Offering were exercised prior to their expiry (4:00 pm on August 27, 2009) for a total of 4,903,305 Units, each Unit consisting of one trust unit of the Trust (a “Trust Unit”) and one transferable warrant to acquire a Trust Unit (a “Warrant”), at a price of $2.30 per Unit for aggregate gross proceeds of $11.3 million. 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.

TD Securities Inc. was the dealer manager for the Rights Offering.

The Trust will use the net proceeds of this issue to increase capital for investment.

Faircourt doesn’t exactly have the most forthcoming website in the world, but the prospectus for the Rights issue is available on SEDAR, dated July 15:

During the period from January 1, 2009 up to and including July 2, 2009, 441,641 Trust Units have been redeemed by the Trust in accordance with the Trust Unit’s annual redemption rights and 101,900 Preferred Securities have been repurchased by the Trust in accordance with the Trust’s normal course issuer bid. Effective January 2009, the Trust decided not to renew its loan facility, which facility was undrawn as of December 31, 2008. As of the date hereof, there are 4,903,305 Trust Units and 9,856,908 Preferred Securities (issued in $10 denominations) issued and outstanding of the Trust.

After giving effect to this Offering and assuming the exercise in full of the Rights (but not the exercise of the Warrants), there will be issued and outstanding the following securities of the Trust: 9,806,610 Trust Units, 9,856,908 Preferred Securities and 4,903,305 Warrants (exercisable into 4,903,305 Trust Units).

The NAV was 4.49 as of August 27 implying 22.0-million in capital. Proceeds of the Rights issue were 11.3-million, so excess capital is now 33.3-million against Preferred obligations of 98.6-million. Asset Coverage is therefore approximately 1.3+:1.

FIG.PR.A was last mentioned on PrefBlog when it was upgraded by DBRS to Pfd-4. FIG.PR.A is tracked by HIMIPref™, but has been relegated to the “Scraps” index due to credit concerns.

This entry was posted on Friday, August 28th, 2009 at 11:59 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.