Connor, Clark & Lunn Real Return Income Fund Announces Special Meeting
TORONTO, Nov. 12, 2012 /CNW/ - Connor, Clark & Lunn Real Return Income Fund ("RRB") announced today that the board of directors of Connor, Clark & Lunn Capital Markets Inc., the manager of the fund, has approved a proposal that would result in the merger of RRB and ING Floating Rate Senior Loan Fund ("ING") (the "Merger Proposal").
ING will be the continuing fund and, as a result, unitholders of RRB would become holders of ING Class A units. The objectives of the Merger Proposal are to provide RRB unitholders with the opportunity to continue their investment in a single fund that will have a larger market capitalization, increased liquidity for the units and a lower management expense ratio.
The investment objectives of ING, as the continuing fund, are to (i) provide holders of ING units with tax-advantaged distributions consisting primarily of returns of capital; (ii) preserve capital; and (iii) generate increased returns in the event that short-term interest rates rise. The investment strategy of ING is to obtain exposure, in a tax-efficient manner, to the performance of a diversified portfolio consisting primarily of senior, secured floating rate corporate loans and other senior debt obligations of non-investment grade North American borrowers held by ISL Loan Trust and actively managed by ING Investment Management Co. LLC.
In order for the Merger Proposal to become effective, it must be approved by a two-thirds majority of the unitholders of RRB present in person or represented by proxy at the Meeting. The Merger Proposal is also subject to the receipt of all necessary regulatory and stock exchange approvals. If approved, the extraordinary resolution is expected to be implemented on or about January 8, 2013 (the "Effective Date"). If the Merger Proposal is approved and implemented, unitholders of RRB will have the opportunity to redeem their RRB units for a redemption price equal to net asset value per unit if they choose not to participate going forward by tendering their units no later than December 28, 2012 for a redemption price per unit equal to the net asset value on January 4, 2013. Payment of the redemption price will be made no later than 10 days following the Effective Date.
A special meeting of RRB unitholders will be held at 8:30 a.m. (Toronto time) on December 12, 2012 at 1 First Canadian Place, Suite 6300, 100 King Street West, Toronto, Ontario. Details of the Merger Proposal will be outlined in an information circular (the "Circular") to be sent to unitholders in connection with the special meeting.
Connor, Clark & Lunn Real Return Income Fund is listed on the Toronto Stock Exchange ("TSX") under the symbol RRB.UN. Class A and Class U Units of ING Floating Rate Senior Loan Fund are listed on the TSX under the symbols ISL.UN and ISL.U, respectively.
SOURCE: Connor, Clark & Lunn Real Return Income Fund
please visit www.cclcapitalmarkets.com or contact:
Neil Murdoch
President & CEO
Connor, Clark & Lunn Capital Markets Inc.
(416) 364-2389
[email protected]
Darren Cabral
Vice President & CFO
Connor, Clark & Lunn Capital Markets Inc.
(416) 214-6182 or 1 (888) 276-2258
[email protected]
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