TORONTO: Sentry Select Capital Corp. is pleased to announce the filing of the final prospectus for the Initial Public Offering of 7% unsecured subordinated debentures, offered by Canadian Income Management Inc. (the “Corporation”), and trust securities, offered by Canadian Income Management Trust (the “Trust”).
The debentures and trust securities will be sold as a bundled unit consisting of one $100 par value of debenture and 15 trust securities at $2.00 per trust security, with a minimum purchase of 25 bundled units at a cost of $3,250. Each trust security consists of one trust unit and one warrant entitling the holder to purchase one additional trust unit at $2.60 per trust unit. The debentures, the trust units and the warrants will separate on closing of the offering.Investment Strategy: The net proceeds of the offering will be invested in Canadian Income Management LP, which will in turn invest the net proceeds in a diversified portfolio of income trusts, royalty trusts and REITS to be actively managed by Sentry Select Capital Corp., the Investment Manager. The initial asset mix of the portfolio will change over time based on the investment managers’ outlook of capital market conditions, prospects and relative valuations of various market sectors.
Investment Objectives: The investment objectives of the Corporation include (i) to provide debentureholders with semi-annual interest payments at a rate of 7% per annum, and (ii) to preserve and potentially enhance the value of the portfolio in order to repay the debentures at maturity.
The investment objectives of the Trust are (i) to provide unitholders with semi-annual cash distributions, initially expected to be $0.155 per trust unit per annum (7.75% of the original issue price of the trust security), and (ii) to preserve and potentially enhance the value of the portfolio in order to return to unitholders at least $2.00 per trust unit upon the termination of the trust in 2012.
Qualifying: The trust units and warrants will be qualified investments for RRSPs, RRIFs, DPSPs and RESPs. The debentures will not be qualified investments for deferred plans.
The Agent: Canaccord Capital Corporation will act as the exclusive agent with respect to the offering.
The Investment Manager: Sentry Select Capital Corp. provides investment, administrative and marketing services to 22 exchange-listed closed-end funds, 16 of which have exposure to the income trust sector, 11 mutual funds, 8 principal-protected notes and 4 limited partnerships. Sentry Select is one of the largest Canadian investment managers in the income trust sector. As of December 31, 2005, the firm had approximately $8.5 billion in gross assets under management.
More information: Investor Services (broker/investor inquiries), Brian McOstrich (media inquiries) Tel: 1-888-246-6656 Fax: 416-364-1197 firstname.lastname@example.org www.sentryselect.com
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