Press Releases

First Asset Active Credit Fund Confirms Merger Details

TORONTO, January 13, 2015 - Further to its press release dated December 12, 2014, First Asset Active Credit Fund (formerly, First Asset Yield Opportunity Trust) (the "Fund") (TSX: FAY.UN and FAY.U) announces that it will merge with First Asset Active Credit ETF (the "ETF") prior to the open of business on January 19, 2015 (the "Effective Date"). The newly-established ETF has filed a final prospectus dated January 12, 2015 with the securities regulatory authorities of all of the provinces and territories of Canada.

In connection with the Merger:

  • Each Series A Unit of the Fund will be exchanged, on a tax-deferred basis, for Common Units of the ETF (TSX: FAO) at an exchange ratio calculated by dividing the net asset value ("NAV") per Series A Unit of the Fund, as determined at the close of business on Friday, January 16, 2015 by $10, representing the issue price of each Common Unit of the ETF. By way of illustration, if the NAV per Series A Unit of the Fund on January 16, 2015 is $12.00 per Series A Unit, then upon the Merger each Series A Unit of the Fund will be exchanged for 1.2 Common Units of the ETF (being $12.00 divided by $10.00); and
  • Each Series B Unit of the Fund will be exchanged, on a tax-deferred basis, for US$ Common Units of the ETF (TSX: FAO.U) at an exchange ratio calculated by dividing the NAV per Series B Unit of the Fund, as determined at the close of business on Friday, January 16, 2015 by $10, representing the issue price of each US$ Common Unit of the ETF. By way of illustration, if the NAV per Series B Unit of the Fund on January 16, 2015 is $7.00 per Series B Unit, then upon the Merger each Series B Unit of the Fund will be exchanged for 0.7 US$ Common Units of the ETF (being $7.00 divided by $10.00).
  • On the exchange of units, the Unitholder will receive a number of whole converted Units. No fractional Units will be issued upon the exchange. Any remaining fraction of an exchanged Unit will be redeemed at its net asset value.

The Common Units and the US$ Common Units of the ETF will commence trading on the Toronto Stock Exchange on Monday, January 19, 2015.

Unitholders of the Fund are not required to take any action in order to be recognized as unitholders of the ETF.

First Asset Smart SolutionsTM
First Asset is an independent investment firm focused on providing smart, low cost solutions that address the real-world investment needs of Canadians - capital appreciation, income generation and risk mitigation. Rooted in strong fundamentals, First Asset's smart solutions strive to deliver better risk-adjusted returns than the broad market while helping investors achieve their personal financial goals.

This communication is intended for informational purposes only. Commissions, management fees and expenses all may be associated with investments funds. Please read the prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated.

For further information, please contact Investor Relations, First Asset at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com.

Not for dissemination to U.S. newswire services or for dissemination to the United States of America.