{"id":16198,"date":"2011-08-30T23:05:36","date_gmt":"2011-08-31T03:05:36","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=16198"},"modified":"2011-08-30T23:05:36","modified_gmt":"2011-08-31T03:05:36","slug":"fcs-pr-b-warrant-offering-for-capital-unitholders","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=16198","title":{"rendered":"FCS.PR.B: Warrant Offering for Capital Unitholders"},"content":{"rendered":"

Faircourt Asset Management has announced<\/a>:<\/p>\n

that it has filed a final short form prospectus for an offering of warrants to unitholders of the Trust (the “Offering”). Each unitholder will receive one whole Series A warrant (each, a “Series A Warrant”) for each unit of the Trust (each, a “Unit”) on the record date of September 23, 2011.<\/p>\n

Each Series A Warrant will entitle the holder thereof to purchase one Unit, one half of a 6.25% preferred security of the Trust (each, a “Preferred Security”) and one Series B warrant (each, a “Series B Warrant”) upon payment of the subscription price of $10.92 (which is the sum of (a) the most recently calculated NAV per Unit prior to the date of the preliminary short form prospectus, (b) $5.00 (which is one-half of the principal amount of a Preferred Security) and (c) the estimated per Unit fees and expenses of the Offering). The Series A Warrants may be exercised on a weekly basis every Friday commencing on September 30, 2011 and ending on December 2, 2011.<\/p>\n

Each Series B Warrant will entitle the holder on and only on June 27, 2012 to subscribe for one Unit at the subscription price of $7.25. The Series B Warrants may be only exercised on June 27, 2012.<\/p>\n

The TSX has conditionally approved this listing of the Series A Warrants distributed pursuant to the Offering, and the Units, Preferred Securities and Series B Warrants issuable upon the exercise thereof, on the TSX.<\/p>\n

Successful completion of the Offering will (a) provide the Trust with additional capital that can be used to take advantage of attractive investment opportunities; (b) increase the trading liquidity of the Units; (c) reduce the leverage associated with the Preferred Securities of the Trust which has increased in recent years due to market conditions and the redemption of Units; (d) bring the Trust closer to achieving a matched position where the number of outstanding Units and Preferred Securities are equal; and (e) reduce the management expense ratio of the Trust.<\/p><\/blockquote>\n

Asset coverage for this issue has been a continuing matter of interest, with an unmatched retraction of capital units on June 30<\/a> being followed by a a matching redemption of preferred securities<\/a> shortly afterwards. As with many other investment vehicles, the fund is now slightly behind where it was on May 31, the effective date of the retraction.<\/p>\n

FCS.PR.B is tracked by HIMIPref\u2122, but is relegated to the Scraps index on credit concerns.<\/p>\n","protected":false},"excerpt":{"rendered":"

Faircourt Asset Management has announced: that it has filed a final short form prospectus for an offering of warrants to unitholders of the Trust (the “Offering”). Each unitholder will receive one whole Series A warrant …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-16198","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/16198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16198"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/16198\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}