HI PAYS Completes IPO

High Income Principal And Yield Securities Corporation (HI PAYS), a mutual fund corporation, completed an initial public offering of 2.67 million preferred shares and 2.67 equity shares at $25 and $20 per share, respectively, for gross proceeds of $120.15 million on March 19, 2002.

Led by CIBC World Markets Inc., the syndicate of agents included BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., HSBC Securities (Canada) Inc., Yorkton Securities Inc., Canaccord Capital Corporation, Desjardins Securities Inc., Dundee Securities Corporation and Raymond James Ltd.

The agents have the option to purchase within 30 days of the closing date as many as 267,000 additional shares and as many as 267,000 additional equity shares, for aggregate proceeds of up to $12.015 million. Simultaneously with the closing of the offering, a private placement of 375,000 subordinate shares with Lawrence Asset Management Inc., manager of HI PAYS, was completed at $20 per share, for gross proceeds of $7.5 million.

Stikeman Elliott acted for HI PAYS and Lawrence Asset Management, with a team that included Jennifer Northcote and Roberta Carano (securities/corporate), William Scott and Daniel Thomson (forward and securities lending) and John Lorito (tax). Fasken Martineau DuMoulin LLP acted for the agents, with a team that included Joel Binder (securities/corporate), Jon Holmstrom and Janne Duncan (forward and securities lending) and Doug Cannon (tax).

Lawyer(s)

Joel E. Binder Daniel H. Thomson Jon J. Holmstrom Janne M. Duncan John G. Lorito Lewis T. Smith