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TSX/NYSE/PSE: MFC SEHK:945 TORONTO,
July 23, 2014 /CNW/ - Manulife Investments is pleased to announce that the Manulife U.S. Regional Bank Trust (the "Fund") has closed its initial public offering of 9,170,000 class A units (the "Class A Units") at a price of
$10.00 per Class A Unit and 1,629,895 class U units (the "Class U Units", together with the Class A Units, the "Units") at a price of
US$10.00 per Class U Unit for gross proceeds of approximately
$108 million. The Class A Units will commence trading today on the Toronto Stock Exchange under the symbol MBK.UN. The Class U Units will not be listed on a stock exchange, but are convertible into Class A Units on a weekly basis. The Fund has granted to the agents an over-allotment option to acquire up to an additional 1,375,500 Class A Units at a price of
$10.00 per Class A Unit exercisable at any time during the next 30 days.
The Fund has been created to invest in an actively managed portfolio (the "Portfolio") comprised primarily of securities of U.S. regional banks and lending companies, including commercial banks and industrial banks, savings and loan associations, and bank and financial holding companies. Manulife Asset Management Limited (the "Manager") will act as trustee, manager and investment manager of the Fund. The Portfolio will be actively managed by Manulife Asset Management (US) LLC (the "Advisor").
The Fund's investment objectives are to:
(i) maximize total return through capital appreciation and distributions; and
(ii) provide holders of the Units with monthly distributions.
The Manager paid the expenses of the offering and a portion of the agents' fees and as a result, the initial net asset value per Unit for the Class A Units and Class U Units immediately following the closing of the offering was
The Fund's initial target distribution amount is expected to be
$0.0416 per Class A Unit per month (or
$0.50 per annum), and
US$0.0416 per Class U Unit per month (or
US$0.50 per annum), representing an initial yield on the original Unit issue price of 5.00% per annum. The Fund does not have a fixed monthly distribution amount but will at least annually, commencing in
January 2015, determine and announce an expected distribution amount for the following 12 months. The initial monthly cash distribution is payable on or before
October 15, 2014 to unitholders of record on
September 30, 2014.
The offering was conducted by a syndicate of agents co-led by RBC Capital Markets and CIBC, that included Scotiabank, TD Securities Inc., BMO Capital Markets, National Bank Financial Inc., GMP Securities L.P., Manulife Securities Incorporated, Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., Dundee Securities Inc. and Mackie Research Capital Corporation.