TORONTO: Sentry Select Capital Corp. (“Sentry Select”) is pleased to announce that a preliminary prospectus for Preferred Energy Split Corp. (the “Corporation”) has been filed with, and a receipt therefor issued by, the securities regulatory authorities in each of the provinces and territories of Canada. The Corporation will issue Preferred Securities and Class A Shares (collectively the “Offering”).
Cash option: The Offering price is $10.00 per Preferred Security and $15.00 per Class A Share.
The Preferred Securities and Class A Shares are being offered separately, but will be issued only on the basis that an equal number of Preferred Securities and Class A Shares will be outstanding at the closing of the Offering.
Exchange option: Prospective purchasers may also acquire Combined Units (being a combination of one Preferred Security and one Class A Share) by an exchange of any of the Eligible Securities listed below, at the applicable Exchange Ratio described below. Prospective purchasers intending to utilize the Exchange Option have to ensure that an Exchange Option Election is received by Computershare Trust Company of Canada through CDS Clearing and Depository Services Inc. (“CDS”) prior to 5:00 p.m. (Toronto time) on July 25, 2007. Such book-entry deposits have to be made by a CDS participant, who may have an earlier deadline.
Investment objectives: The Corporation’s investment objectives are:
a) with respect to the Preferred Securities: (i) to provide holders of Preferred Securities with fixed quarterly interest payments equal to 6.25% per annum on the principal amount of the Preferred Securities; and (ii) to return the original issue price of the Preferred Securities on or about December 31, 2010; and
b) with respect to the Class A Shares: (i) to provide holders of Class A Shares with monthly cash distributions (initially, to be $0.1125 per Class A Share representing a yield on the issue price of the Class A Shares of 9.0% per annum); and (ii) to provide holders of the Class A Shares with the opportunity for leveraged growth in net asset value per Class A Share after the repayment of the original issue price of the Preferred Securities.
To meet the Corporation’s investment objectives, the net proceeds from the Offering will be invested primarily in investment funds whose securities are listed on a recognized stock exchange in North America and that have a majority of their investments in energy and/or energy related issuers.
Exchange Ratio: The number of Combined Units issuable for the Eligible Securities of an Exchange Issuer deposited by a prospective purchaser pursuant to the Exchange Option will be determined by dividing the volume weighted average trading price of the Eligible Securities of such Exchange Issuer on the Toronto Stock Exchange (“TSX”) during the three consecutive trading days ended on July 25, 2007, as adjusted to reflect distributions declared by an Issuer that will not be received by the Corporation; by $25.00.
ACTIVEnergy Income Fund
Acuity Focused Total Return Trust
Alberta Focused Income & Growth Fund
Brompton Advantaged Equal Weight Oil & Gas Income Fund
Brompton Equal Weight Oil & Gas Income Fund
Canadian Resources Income Trust
Citadel SMaRT Fund
diversiTrust Energy Income Fund
Energy Plus Income Trust
First Asset Pipes & Power Income Fund
First Asset PowerGen Fund
Oil Sands Sector Fund
Sentry Select Commodities Income Trust
Strategic Energy Fund
Sustainable Production Energy Trust
Sentry Select Capital Corp.: Sentry Select is a Canadian wealth management company that manages over $8 billion in gross assets, including $1.7 billion in assets under management in the oil and gas sector, as of June 30, 2007. The company offers a diverse range of investment products including energy investment funds, mutual funds, principal protected notes and flow through limited partnerships, covering a variety of domestic and global mandates. With 29 reporting issuers Sentry Select is the leading manager and/or advisor to entities listed on the TSX. In addition, Sentry Select manages and/or provides advisory services to 4 reporting issuers listed on the TSX Venture exchange.
Agents: The syndicate of agents is co-led by CIBC World Markets Inc. and RBC Capital Markets and includes BMO Capital Markets, National Bank Financial Inc., TD Securities Inc., Canaccord Capital Corporation, Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Blackmont Capital Inc., Wellington West Capital Inc., Berkshire Securities Inc., Desjardins Securities Inc., Jory Capital Inc., Research Capital Corporation and Richardson Partners Financial Limited.
More information: Investor Services (broker/investor inquiries) or Kinga Lam (media inquiries)
Tel: 1-888-246-6656 Fax: 416-364-1197 firstname.lastname@example.org www.sentryselect.com
This news release contains forward-looking statements that involve risks and uncertainties. These statements reflect Sentry Select’s current expectations, but are subject to a number of risks and uncertainties. Due to the many risks and uncertainties, Sentry Select cannot assure that the forward-looking statements contained in this news release will be realized.
A preliminary prospectus dated July 5, 2007 relating to these securities has been filed with the securities regulatory authority in each of the provinces and territories of Canada, but has not yet become final for the purpose of the sale of securities to the public. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale or any acceptance of an offer to buy these securities in any province or territory of Canada prior to the time a receipt of the final prospectus is obtained from such securities regulatory authorities. Important information concerning this offering is contained in the prospectus. Obtain a copy from your financial advisor and read the prospectus before investing.
Documents (including press releases) regarding the various investment funds that are managed or advised by Sentry are provided for information purposes only and cannot be relied on to be complete, exhaustive or error-free unless the complete set of documents for any given investment fund with respect to which information is being sought is reviewed and then only on SEDAR (www.sedar.com).