PATHFINDER Completes $155M IPO

PATHFINDER Income Fund, a closed-end investment trust whose objectives are to provide unitholders with a stable monthly income stream of 9 per cent per annum, as well as that of capital repayment, completed its initial public offering of 14.5 million units on October 11, 2002, generating gross proceeds of $145 million. Pursuant to the exercise of an over-allotment option, PATHFINDER raised an additional $10 million on November 6, 2002. The net proceeds of the offering will be invested in a broadly diversified managed portfolio of securities consisting primarily of units of real estate investment trusts, business trusts, royalty trusts and pipeline and power generation trusts, supplemented by a small component of other high-yielding, equity-based securities such as convertible securities and new income trust sectors. The co-advisors to PATHFINDER are Middlefield Securities Limited and Guardian Capital Inc., who will be responsible for providing investment advice to the trust’s portfolio. Subsequent to the closing of the offering, PATHFINDER entered into a $60 million credit facility agreement with The Bank of Nova Scotia.

CIBC World Markets Inc. and RBC Capital Markets Inc. acted as co-lead agents for the offering. The other syndicate members included BMO Nesbitt Burns Inc., National Bank Financial Inc., TD Securities Inc., Scotia Capital Inc., Desjardins Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Yorkton Securities Inc., Middlefield Securities Limited, Dundee Securities Corporation, Raymond James Ltd., Research Capital Corporation and Wellington West Capital Inc.

PATHFINDER and Middlefield were represented by Fasken Martineau DuMoulin LLP in Toronto, with a team comprised of Stephen Erlichman, Tracy Hooey and John Sabetti (securities), Elizabeth Johnson and Doug Cannon (tax) and Jon Holmstrom (banking).

The agents were represented by McCarthy Tétrault LLP in Toronto, with a team comprised of Christopher Hoffmann and Andrew Armstrong (securities) and James Morand (tax). PATHFINDER’s lender, The Bank of Nova Scotia, was represented by Richard Higa and David Taylor of McMillan Binch LLP.


John M. Sabetti Richard T. Higa Tracy L. Hooey James G. Morand Jon J. Holmstrom Elizabeth J. Johnson Christopher S. L. Hoffmann David Taylor