/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES./
TORONTO, Dec. 21,
2023 /CNW/ - Next Edge Capital Corp. ("Next
Edge" or the "Manager") is pleased to announce the closing of the
initial public offering (the "Offering") of 2028 Investment Grade
Bond Trust (the "Fund"). Pursuant to the Offering, the Fund issued
an aggregate of 1,405,450 Class A Units and
1,844,550 Class F Units (collectively, the "Units") for gross
proceeds of $32,500,000.
The Units were issued at a price of $10.00 per Class A Unit and $10.00 per Class F Unit. Following the closing of
the Offering, the Class A Units were reclassified as Class F Units
based on their respective NAV per Unit such that, currently, only
Class F Units are outstanding. The Class F Units are listed on the
Toronto Stock Exchange under the symbol "IGBT.UN".
The Fund has been created to acquire a portfolio comprised
primarily of debt securities of Canadian companies. The Manager has
retained Ridgewood Capital Asset Management Inc. to provide
portfolio management services to the Fund.
The Fund's investment objectives are to: (i) preserve capital;
and (ii) pay quarterly cash distributions, by investing primarily
in corporate debt securities. At least 75% of the portfolio will be
invested in investment grade securities and up to 25% of the
portfolio may be invested in high yield debt securities. The
portfolio is expected to be comprised primarily of eligible debt
securities that have an average maturity of five (5) years or less
and it is expected that the securities generally will be held by
the Fund until their respective maturities. Notwithstanding the
foregoing, the Fund may sell or transfer eligible debt securities
prior to their maturity.
The Fund will not have a fixed quarterly distribution amount but
intends to make cash distributions quarterly. The Fund's quarterly
distributions are targeted to be approximately $0.125 per Unit per quarter for the Fund's first
four quarters of operation or $0.50
for the Fund's first year of operation.1 The initial
cash distribution is expected to be payable to unitholders of
record on March 31, 2024.
The syndicate of agents for the Offering was led by National
Bank Financial Inc. and included Scotiabank, CIBC Capital Markets,
RBC Capital Markets, BMO Capital Markets, Canaccord Genuity Corp.,
Wellington-Altus Private Wealth Inc., iA Private Wealth Inc.,
Raymond James Ltd., Richardson Wealth Limited, Desjardins
Securities Inc., Echelon Wealth Partners Inc., Independent Trading
Group (ITG) Inc., Manulife Securities Incorporated, and Research
Capital Corporation (collectively, the "Agents").
About Next Edge
Next Edge is an investment fund manager and a leader in the
structuring and distribution of alternative, private credit and
value-added fund products in Canada. The firm is led by an experienced
management team that has launched numerous investment solutions in
a variety of product structures and has been responsible for
raising over $3 billion of
alternative assets since 2000.2 Next Edge specializes
and focuses on providing unique, non-correlated pooled investment
vehicles to the Canadian marketplace.
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1 The
targeted quarterly distribution rate is not a projection or
prediction of future results of the Fund. There can be no assurance
that the Fund will achieve the target distribution rate or any
particular level of return. Actual results may vary significantly
from the target distribution rate.
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2 Please
note that over CAD $2 billion of the CAD $3 billion of alternative
assets raised relates to assets that were raised at a previous
firm(s).
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Further information can be found at www.nextedgecapital.com or
contact Next Edge at (416) 775-3600 or via email at
info@nextedgecapital.com.
Next Edge Capital Corp., 1 Toronto Street, Suite 200,
Toronto, Ontario M5C 2V6.
The Offering is made only by prospectus. The prospectus
contains important detailed information about the securities being
offered. Copies of the prospectus may be obtained from any of the
Agents. Investors should read the prospectus before making an
investment decision.
There are ongoing fees and expenses associated with owning
securities of an investment fund. An investment fund must prepare
disclosure documents that contain key information about the fund.
You can find more detailed information about the fund in these
documents. Investment funds are not guaranteed, their values change
frequently and past performance may not be
repeated.
The Units have not been and will not be registered under
the United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), or the securities laws of any state of
the United States, and may not be
offered or sold, directly or indirectly, in the United States (as defined in Regulation S
under the U.S. Securities Act) unless registered under the U.S.
Securities Act and applicable securities laws of any state of
the United States or in reliance
on an exemption from such registration requirements. This news
release does not constitute an offer to sell, or a solicitation of
an offer to buy any of the Fund's securities referred to herein in
the United States.
SOURCE 2028 Investment Grade Bond Trust