U.S. Banks Income & Growth Fund Announces Exchange Ratios for Exchange Option

Purpose Investments Inc., on behalf of the U.S. Banks Income & Growth Fund (the “Fund”), is pleased to announce the exchange ratios for the exchange offer by the Fund (the “Exchange Option”) being made under the final prospectus of the Fund dated November 25, 2015.

The Fund’s investment objectives are to:

  • (i) maximize total return through capital appreciation and distributions; and
  • (ii) provide unitholders with monthly distribution.

To achieve its investment objectives, the Fund will invest in a portfolio (the “Portfolio”) comprised primarily of equity securities from a universe of financial sector securities listed in the U.S., including but not limited to commercial banks and industrial banks, and financial services companies such as insurance companies and financial holding companies. At least 50% of the foreign currency exposure within the Portfolio will be hedged back to the Canadian dollar at all times.

The initial target distribution yield for the fund is 5.0% per annum based on the original subscription price (or $0.0417 per unit per month or $0.50 per unit per annum).

The number of units issuable for each class of security of an Exchange Eligible Issuer (as listed below) (the “Exchange Ratio”) has been determined by dividing the weighted average trading price of such security during the period of five consecutive trading days ending on December 8, 2015 (the “Pricing Period”), as adjusted to reflect distributions declared by any Exchange Eligible Issuer that will not be received by the Fund, by $10.00. The Exchange Ratio for any such securities that do not trade in Canadian dollars have been determined by converting the weighted average trading price on the applicable exchange of such securities into Canadian dollars based on the Bank of Canada noon rate of exchange on the last day of the Pricing Period. Holders of securities of Exchange Eligible Issuers who deposited such securities pursuant to the Exchange Option will continue to be holders of record up to but not including the date of the closing of the offering of units and will be entitled to receive distributions in respect of such securities of Exchange Eligible Issuers that are declared up to but not including such date. Each Exchange Ratio has been rounded down to five decimal places.

The table below sets out the Exchange Eligible Issuers, the securities of which may be accepted by the Fund pursuant to the Exchange Option, including the name of the Exchange Eligible Issuer, its ticker symbol, its CUSIP number, its ISIN, its volume weighted average trading price during the Pricing Period and the Exchange Ratio.

NAME TICKER SYMBOL CUSIP ISIN VWAP ($) EXCHANGE RATIO
Aflac Inc AFL US 001055102 US0010551028 63.4864 8.62970
Bank of America Corp BAC US 060505104 US0605051046 17.5502 2.38559
Bank of New York Mellon Corp BK US 064058100 US0640581007 43.4942 5.91216
BB&T Corp BBT US 054937107 US0549371070 38.4716 5.22944
Citigroup Inc C US 172967424 US1729674242 54.2439 7.37337
Citizens Financial Group Inc CFG US 174610105 US1746101054 26.6131 3.61751
CNA Financial Corp CNA US 126117100 US1261171003 36.5879 4.97339
Comerica Inc CMA US 200340107 US2003401070 44.8342 6.06576
Fifth Third Bancorp FITB US 316773100 US3167731005 20.6230 2.80328
KeyCorp KEY US 493267108 US4932671088 13.1807 1.79165
MetLife Inc MET US 59156R108 US59156R1086 50.3247 6.84063
Morgan Stanley MS US 617446448 US6174464486 34.7672 4.72590
Regions Financial Corp RF US 7591EP100 US7591EP1005 10.0121 1.35278
Unum Group UNM US 91529Y106 US91529Y1064 36.4033 4.94830
Bank of Montreal BMO CN 063671101 CA0636711016 78.6412 7.86412
Bank of Nova Scotia BNS CN 064149107 CA0641491075 58.8801 5.88801
Canadian Imperial Bank of Commerce CM CN 136069101 CA1360691010 97.1367 9.71367
National Bank of Canada NA CN 633067103 CA6330671034 43.2482 4.32482
Royal Bank of Canada RY CN 780087102 CA7800871021 75.8800 7.58800
Toronto-Dominion Bank TD CN 891160509 CA8911605092 54.2437 5.42437
Great-West Lifeco Inc GWO CN 39138C106 CA39138C1068 35.6550 3.56550
Industrial Alliance Insurance & Financial Services Inc IAG CN 455871103 CA4558711038 45.5151 4.55151
Manulife Financial Corp MFC CN 56501R106 CA56501R1064 22.0250 2.20250
Sun Life Financial Inc SLF CN 866796105 CA8667961053 44.0361 4.40361

The syndicate of agents is being led by National Bank Financial Inc. and includes BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., GMP Securities L.P., Canaccord Genuity Corp., Manulife Securities Incorporated, Desjardins Securities Inc., Dundee Securities Ltd., Global Securities Corporation, Industrial Alliance Securities Inc., Mackie Research Capital Corporation and PI Financial Corp.

For further information, please visit our website at www.purposeinvest.com or contact Dan Rubin Vice President, Marketing, at (416) 583-3853 or toll-free at Info@purposeinvest.com

This offering is made by prospectus. The prospectus contains important information about the securities being offered. Copies of the prospectus may be obtained from your IIROC registered financial advisor using the contact information for such advisor. Investors should read the prospectus before making an investment decision.

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