Jazz Air Income Fund will have an annual yield of 8.75 per cent, says ACE Aviation Holdings Inc., the parent company of Air Canada and the regional Jazz airline. ACE said yesterday that it will sell 23.5 million trust units at $10 apiece in the first tranche of Jazz's initial public offering. Assuming an overallotment option to sell another 3.525 million units is exercised, ACE will end up with a 78-per-cent stake in Jazz. The total value of Jazz will be almost $1.23-billion, with the IPO valued at $270-million representing a 22-per-cent stake. Jazz units, with the symbol JAZ.UN, are expected to begin trading on the TSX in early February. The yield is lower than Jazz envisaged two weeks ago, but in line with what analysts anticipated when ACE announced its plans last November to spin off a minority Jazz stake. Investors are snapping up Jazz units, despite the airline sector's volatility, industry observers say. ACE.B (TSX) rose 82 cents to $37.35. Brent Jang
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