TSX Symbol: CIX.UN
TORONTO, June 19 /CNW/ - CI Investments Inc. ("CI"), the manager of CIX Split Corp. (the "Company"), today announced that the Company has completed its initial public offering of two million Priority Equity Shares, at a price of $10 each, and two million Class A Shares, at a price of $15 each, for total gross proceeds of $50 million.
The Priority Equity Shares are now trading on the Toronto Stock Exchange under the symbol CXC.PR.A and the Class A Shares under CXC.
The Company is an investment fund designed to provide tax-efficient exposure to trust units of CI Financial Income Fund through two classes of securities.
The investment objectives for the Priority Equity Shares are to provide tax-efficient fixed cumulative preferential monthly cash distributions of $0.04167 per share to yield approximately 5.0% annually on the original issue price, and to pay shareholders the original issue price on or about January 31, 2011.
The investment objectives for the Class A Shares are to provide regular tax-efficient monthly cash distributions targeted to be $0.0875 per share to yield 7.0% annually on the original issue price, and to pay shareholders at least the original issue price on or about January 31, 2011.
The distributions on the two classes of the Company's shares will be tax-efficient through the use of a forward agreement, which provides for distributions to be characterized primarily as return of capital and capital gains. The Company's termination date of January 2011 is designed to coincide with the expected implementation of a federal proposal to tax existing income trusts.
CI Financial Income Fund (TSX: CIX.UN) is a diversified wealth management company with approximately $99.5 billion in fee-earning assets as of May 31, 2007. It currently pays a monthly distribution of $0.18 per trust unit, representing an annual yield of approximately 7.5%.
CIBC World Markets Inc. and Blackmont Capital Inc. were the lead agents for the offering, along with a syndicate of other investment dealers.
CI Investments Inc., a corporation controlled by CI Financial Income Fund, offers a broad range of investment products and services, including an industry-leading selection of investment funds. CI is on the Web at www.ci.com.