Coastal Income Completes $218M in Share Offerings

Coastal Income Corp. completed, on July 3, 2002, a $125 million initial public offering of senior preferred shares and a concurrent $93.25 million private placement of capital shares. Coastal used the aggregate proceeds of these offerings to purchase a portfolio of listed preferred shares diversified by issuer, industry and payment type (the portfolio). Coastal’s investment objectives are to provide a quarterly dividend of $0.3625 per senior preferred share, to redeem the senior preferred shares on December 31, 2009 for their original offering price of $25 per share, to maintain and improve the asset coverage on the senior preferred shares, and to enable the holders of capital shares to participate in the capital appreciation of the portfolio.

Scotia Capital Inc. led the syndicate of agents, which included CIBC World Markets Inc., RBC Dominion Securities Inc., TD Securities Inc., National Bank Financial Inc., Dundee Securities Corporation and Thomson Kernaghan & Co. Ltd.

Will Fung, Jules Lewy and Christopher Steeves (tax) and Kim Cadario of Fraser Milner Casgrain LLP represented Coastal in connection with the offerings. Osler, Hoskin & Harcourt LLP acted for the agents, with a team consisting of Andrew Aziz and Andrew McGuffin (tax) and Dana Easthope.


Christopher J. Steeves Jules Lewy Andrew W. Aziz William Fung Andrew S. McGuffin Dana Easthope Kim P. Cadario