Jazz Air income fund IPO priced at $10

Jazz Air income fund IPO priced at $10

ACE Aviation Holdings Inc. said Tuesday that 23.5 million units of Jazz Air Income Fund will be sold at $10 each as part of its initial public offering.

The units will trade on the TSX under the symbol JAZ.un. Trading will commence after the IPO closes on Feb. 2.

Underwriters of the IPO will also have an option to buy an additional 3.525 million units of the fund.

In late November, just days federal Finance Minister Ralph Goodale said the tax rules governing income trusts will not change, Air Canada (TSX:ACE.rv) announced plans to spin off a minority stake in the Jazz Air regional airline into a trust.

In its announcement Tuesday after the close of stock markets, ACE, which is the parent firm of Air Canada, said the income fund will hold just over 19 per cent of Jazz.

With a fleet of 120 aircraft, Jazz serves 56 destinations in Canada and 17 in the United States.