HBanc Capital Securities Trust Closes Initial Public Offering

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./

TORONTO, Oct. 13 /CNW/ - Connor, Clark & Lunn Capital Markets Inc. (the "Manager") is pleased to announce the closing of the initial public offering of HBanc Capital Securities Trust (the "Fund").  The Fund raised gross proceeds of $147,572,325 from the sale of 5,797,393 Class A Units, Series 1 and 105,500 Class A Units, Series 2, respectively, at a price of $25 per Unit.  These amounts include the Class A, Series 1 Units issued in respect of the over-allotment option which was exercised in full.  The Fund also raised gross proceeds of U.S. $26,332,225 from the sale of 1,042,724 Class U Units, Series 1 and 10,565 Class U Units, Series 2, respectively, at a price of U.S. $25 per Unit. These amounts include 171,035 Class U Units, Series 1 and 2,165 Class U Units, Series 2 that were issued pursuant to the exchange option. The Class A Units, Series 1 are listed on the Toronto Stock Exchange under the symbol HSC.UN.  Class A Units, Series 2 and Class U Units will not be listed on a stock exchange but may be converted into Class A Units, Series 1 on a weekly basis.

The Fund was established to provide investors with high levels of stable, tax-advantaged distributions through exposure to Capital Securities issued by HSBC Holdings plc, a conservatively positioned and strongly capitalized global bank.

The Fund's investment objectives are to (i) provide Unitholders with monthly, tax-advantaged distributions consisting primarily of returns of capital, currently representing a yield on the Unit issue price of 7.0% per annum, and (ii) provide exposure to the Capital Securities.  The Fund will not have a fixed distribution, but intends to make monthly distributions based on the actual and expected distributions on the Capital Securities less the Fund's estimated expenses.

The Capital Securities are denominated in U.S. dollars. The Manager intends to hedge substantially all of the value of the Capital Securities back to the Canadian dollar in respect of Class A Units. The Manager will not hedge its currency exposure in respect of Class U Units.

The Units were offered for sale by a syndicate of agents led by BMO Capital Markets and HSBC Securities (Canada) Inc., and includes CIBC, RBC Capital Markets, National Bank Financial Inc., Scotia Capital Inc., GMP Securities L.P., Canaccord Genuity Corp., Dundee Securities Corporation, Macquarie Capital Markets Canada Ltd., Raymond James Ltd., Desjardins Securities Inc., Mackie Research Capital Corporation and Wellington West Capital Markets Inc.

For further information:

For more information, please visitwww.cclcapitalmarkets.com or contact:

Darren Cabral
Vice President
Connor, Clark & Lunn Capital Markets Inc.
[phone] or 1 [phone]
[email protected]