Toronto: Sentry Select Capital Corp. is pleased to announce that Canadian Income Management Inc. (the “Corporation”) and Canadian Income Management Trust (the “Trust”) completed a second closing on March 30, 2006 and issued an additional 33,636 bundled units for gross proceeds of $4,372,680.
Gross proceeds: Together with the first closing on February 21, 2006, the Corporation and Trust have issued 341,336 bundled units, at a price of $130 per bundled unit, for total gross proceeds of approximately $44.37 million. Each bundled unit consists of a $100 principal amount of 7% unsecured subordinated debentures of the Corporation due August 31, 2012; 15 trust units of the Trust; and 15 trust unit purchase warrants of the Trust. Each warrant entitles the holder to acquire one trust unit at a price of $2.60, expiring on February 28, 2012. After closing, each of the debentures, trust units and warrants trades separately.
Over-allotment option: Canaccord Adams, the exclusive agent for the offering, has been granted an option to purchase up to 15% of the aggregate number of bundled units issued pursuant to the initial closing and any additional closings, at a price of $130 per bundled unit, for a period of 30 days following the closing, solely to cover over-allotments of units.
Trading information: The debentures, trust units and warrants trade on the Toronto Stock Exchange under the symbols CAI.DB, CNM.UN and CNM.WT respectively.
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.
To meet the investment objectives, 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 agent: Canaccord Adams acted as the exclusive agent with respect to the offering.
The investment manager: Sentry Select Capital Corp. provides investment, administrative and marketing services to 23 exchange-listed closed-end funds, 17 of which have exposure to the income trust sector, 16 mutual funds, 11 principal-protected notes and three flow-through limited partnerships. Sentry Select is one of the largest Canadian investment managers in the income trust sector. As of February 28, 2006, the firm had approximately $9.0 billion in gross assets under management.
More information: Investor Services (broker/investor inquiries), Brian McOstrich (media inquiries) or Tel: 1-888-246-6656 Fax: 416-364-1197 firstname.lastname@example.org www.sentryselect.com
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