Senior Secured Floating Rate Loan Fund Completes Initial Public Offering

TORONTO, Sept. 23, 2013 /CNW/ - Senior Secured Floating Rate Loan Fund (the "Fund") is pleased to announce the closing of its initial public offering (the "Offering").  Pursuant to the Offering, the Fund raised gross proceeds of $172,000,000 from the issuance of 17,200,000 Class A units and $9,641,400 from the issuance of 964,140 Class U units.  Pursuant to the Offering, the Fund has granted an over-allotment option to agents to acquire up to an additional 15% of Class A units issued at a price of $10.00 per Class A unit exercisable at any time during the next 30 days.  The Class A units are listed on the Toronto Stock Exchange under the symbol FRL.UN.

The Fund's investment objectives are to provide holders of Units with stable monthly cash distributions, preservation of capital and increased returns in the event that short-term interest rates rise.  The Fund has been created to invest in an actively managed portfolio consisting primarily of first lien senior secured floating rate corporate loans of U.S. borrowers.  The Fund's distributions are initially targeted to be 6.5% per annum on the subscription price of $10 ($0.054167 per Class A unit per month or U.S.$0.054167 in the case of Class U Units).

Propel Capital Corporation ("Propel") is the manager and promoter of the Fund.  Propel has retained Credit Suisse Asset Management, LLC ("Credit Suisse") to provide portfolio management services to the Fund. Credit Suisse has approximately U.S. $400 billion in assets under management as of March 31, 2013, including over U.S. $19 billion in senior secured loans.

The syndicate of agents for this offering was led by CIBC, National Bank Financial Inc., RBC Capital Markets, and TD Securities Inc., and included BMO Capital Markets, GMP Securities L.P., Scotiabank, Raymond James Ltd., Canaccord Genuity Corp., Macquarie Private Wealth Inc., Desjardins Securities Inc., Dundee Securities Ltd. and Manulife Securities Incorporated.

This offering is only made by prospectus. The prospectus contains important detailed information about the securities being offered. Copies of the prospectus may be obtained from one of the above-noted agents using the contact information for each such agent. Investors should read the prospectus before making an investment decision.

SOURCE: Senior Secured Floating Rate Loan Fund

Please call Raj Lala, President, Propel Capital at 416-572-2364 or visit  www.propelcapital.ca