(April 24 – 11:00 ET) – Triax Trust has filed a preliminary prospectus with the securities commissions of all 10 Canadian provinces and is commencing marketing of an initial public offering of capital repayment target securities.
The investment objectives, says the Trust, include:
– capital repayment: to pay to holders of CaRTS an amount equal to the subscription price paid per CaRTS on the termination date 10 years from closing of the offering;
– distributions: to provide holders of CaRTS with a stable stream of quarterly distributions of at least 9.25% on the subscription price;
– capital appreciation: to achieve capital appreciation above the original investment amount through active management of a portfolio of equity securities.
The capital repayment objective will be achieved by entering into a forward purchase and sale agreement with TD Global Finance. The obligations of TDGF will be guaranteed by Toronto Dominion Bank. The active portfolio will be managed by Elijah Asset Management, LLC, of San Francisco, manager of Triax’s New Millennium Technology .
TD Securities Inc. and RBC Dominion Securities Inc. are the lead agents for the Trust. The investment syndicate also includes Merrill Lynch Canada Inc., BMO Nesbitt Burns Inc., Scotia Capital Inc., CIBC World Markets Inc., National Bank Financial Inc., HSBC Securities (Canada) Inc., Cannacord Capital Corporation, Goepel McDermid Inc., Yorkton Securities Inc. and Trilon Securities Corporation. The offering is scheduled to close in May 2000.
-IE Staff