ING Diversified Floating Rate Senior Loan Fund Announces Closing of Over-Allotment Option
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./
TORONTO, April 17, 2013 /CNW/ - Connor, Clark & Lunn Capital Markets Inc. (the "Manager") is pleased to announce that the syndicate of agents for the initial public offering of ING Diversified Floating Rate Senior Loan Fund (the "Fund") has exercised a portion of its over-allotment option. As a result of the exercise of the over-allotment option, the Fund raised additional gross proceeds of $7,039,240 from the sale of 703,924 Class A Units. Inclusive of the over-allotment option, the Fund raised gross proceeds of $167,039,240 from the sale of 16,703,924 Class A units and U.S.$17,714,670 from the sale of 1,771,467 Class U Units. The Class A Units are listed on the Toronto Stock Exchange ("TSX") under the symbol IFL.UN.
The Fund's investment objectives are to (i) provide tax-advantaged monthly cash distributions consisting primarily of returns of capital; (ii) preserve capital; and (iii) generate increased returns in the event that short-term interest rates rise, in each case, through exposure to a diversified portfolio consisting primarily of senior, secured floating rate corporate loans ("Senior Loans") and other senior debt obligations of non-investment grade North American borrowers, actively managed by ING Investment Management Co. LLC (the "Sub-Advisor"). The Portfolio will consist primarily of senior, secured floating rate corporate loans that are expected to generate increased returns in the event that short-term interest rates rise.
The Fund does not have a fixed distribution policy, but intends to make monthly distributions based on the actual and expected returns on the Portfolio. Given that the majority of the Portfolio will be invested in Senior Loans which are floating rate, returns may vary with changes in interest rates. The Fund's initial distribution target is expected to be $0.05 per Unit per month (U.S. $0.05 in the case of the Class U Units), representing an initial yield on the Unit issue price of 6.0% per annum.
The Sub-Advisor is currently an indirect, wholly-owned subsidiary of ING Group N.V., one of the world's largest financial services companies. As of September 30, 2012, the Sub-Advisor employed over 200 investment professionals and had over $179 billion in total assets under management across all portfolios and strategies. The ING Senior Loan Group, a unit of the Sub-Advisor, which will manage the Portfolio, is located in Scottsdale, Arizona (with an additional office in London, UK), and consists of a team of 25 investment professionals and 21 support staff. The ING Senior Loan Group currently manages over U.S. $14.0 billion in assets that are substantially similar to the Senior Loan investments that it will manage for the Portfolio. Connor, Clark & Lunn Capital Markets Inc. will act as Manager of the Fund. The Manager is a leading provider of investment products, having raised approximately $2.3 billion in assets.
The Units were offered for sale by a syndicate of agents led by BMO Capital Markets and including CIBC, RBC Capital Markets, TD Securities Inc., GMP Securities L.P., National Bank Financial Inc., Scotiabank, Canaccord Genuity Corp., Macquarie Private Wealth Inc., Raymond James Ltd., Desjardins Securities Inc., Mackie Research Capital Corporation and Manulife Securities Inc.
SOURCE: ING Diversified Floating Rate Senior Loan Fund
Please visit www.cclcapitalmarkets.com or contact:
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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