Mortgage-Backed Securities Trust Completes IPO

On April 16, 2003, Mortgage-Backed Securities Trust, completed an initial public offering of five million units at $10 per unit for gross proceeds of $50 million. The agents for the offering have an over-allotment option for 750,000 units. The trust’s investment objectives are to provide unitholders with a stream of monthly cash distributions that, in any year, will be targeted to approximate the average 10-year U.S. treasury note yield for that year plus 3.5 per cent and to preserve the net asset value of the trust. The trust will indirectly invest in a portfolio consisting primarily of AAA rated mortgage-backed securities issued by U.S. agencies on a leveraged basis. Sentry Select Capital Corp. is manager of the trust and Fixed Income Discount Advisory Company (FIDAC) is the investment manager.

CIBC World Markets Inc. led the offering, with a syndicate that included National Bank Financial Inc., BMO Nesbitt Burns Inc., TD Securities Inc., Canaccord Capital Corporation, Desjardins Securities Inc., Dundee Securities Corporation, First Associates Investments Inc., HSBC Securities (Canada) Inc. and Raymond James Ltd.

Borden Ladner Gervais LLP acted for the trust in Canada, with a team that included Paul Findlay, Michael De Cosimo, Daniel Westreich and Sarah Gardiner (securities/corporate), Stephen Fyfe and Stephanie Wong (tax), and in the U.S., by Gil Cornblum (securities/corporate) and John Hollinrake and Gabe Gartner (tax) of Dorsey & Whitney LLP.

Davies Ward Phillips & Vineberg LLP acted for the agents, with a team that included Shawn McReynolds and Richard Fridman (securities/corporate) and Ron Wilson (tax), and Bari Zahn (tax) in New York. Michael Sharp (securities/corporate) of Blake, Cassels & Graydon LLP acted for FIDAC.