Symphony loan fund prices initial public offering of class A, U units

By Toni Weeks

San Diego, Aug. 18 - Symphony Floating-Rate Senior Loan Fund has filed a preliminary prospectus for a public offering of class A units and class U units, according to a press release issued by Brompton Funds Ltd., the fund's manager.

The price for both classes of units will be $10.00, with the class A units in Canadian dollars and the class U units in U.S. dollars.

The fund's investment objectives are to provide monthly tax-advantaged distributions consisting primarily of returns of capital, to provide the potential for enhanced returns as interest rates rise and to preserve capital. Each of the objectives will be attained through exposure to an actively managed and diversified portfolio consisting mostly of short-duration floating-rate senior corporate debt instruments, including senior secured loans and other senior debt obligations of North American non-investment-grade corporate borrowers.

The fund's initial distribution target is expected to be C$0.04583 per class A unit per month and $0.04583 per class U unit per month, representing an initial yield of 5.5% per year, which consists primarily of returns of capital that are not immediately taxable but which reduce a unitholder's adjusted cost base of its units.

Brompton intends to hedge substantially all of the value of the portfolio attributable to the class A units to the Canadian dollar and the class A units to the U.S. dollar.

Brompton has selected Symphony Asset Management LLC, a wholly owned subsidiary of Nuveen Investments, Inc., to act as sub-adviser in connection with the selection, purchase and sale of senior loans and other assets of the portfolio.

The syndicate of agents for the offering is being co-led by RBC Capital Markets, CIBC and BMO Capital Markets and includes National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., GMP Securities LP, HSBC Securities (Canada) Inc., Raymond James Ltd., Canaccord Genuity Corp., Macquarie Private Wealth Inc., Desjardins Securities Inc., Dundee Securities Ltd., Mackie Research Capital Corp. and Manulife Securities Inc.

Further information can be obtained from Brompton's investor relations line (416 642-9051 or toll-free 866 642-6001).

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