TORONTO: Sentry Select Capital Corp. (“Sentry Select” or “Manager”) is pleased to announce that Sentry Select Diversified Income Trust (the “Trust”) has filed, and received a receipt for, a preliminary short-form prospectus across Canada, qualifying units of the Trust (the “Trust Units”) to be issued in connection with its exchange offer (the “Exchange Offer”) for securities of issuers (the “Issuers”) listed below.
Deposit date and closing: Acceptances of the Exchange Offer must be deposited with Computershare Investor Services Inc. through CDS Clearing and Depository Services Inc. (“CDS”) until 4:00 pm (Toronto time) on October 15, 2007 (the “Deposit Date”). Subject to the satisfaction of the conditions of the Exchange Offer, the closing is expected to occur on or about October 26, 2007.
Exchange ratio: Trust Units may be purchased by the exchange of eligible securities of any Issuer named below. The number of Trust Units issuable for the securities of each Issuer (the “Exchange Ratio”) will be determined by dividing the volume weighted average trading price of such securities on the Toronto Stock Exchange (“TSX”) during the period of three consecutive trading days ending on the Deposit Date (the “Pricing Period”) by the volume weighted average trading price of the Trust Units on the TSX during the Pricing Period.
Acceptance: The Exchange Offer will remain open for acceptance until 4:00 p.m. (Toronto time) on October 15, 2007. The Exchange Offer may be accepted only by means of a book-entry deposit through CDS. Holders of securities of an Issuer who wish to accept the Exchange Offer must request their investment adviser, investment dealer, bank, trust company or other nominee to effect the transaction for them and should do so not later than October 12, 2007 to ensure that their securities are included in the deposit to be made through CDS on October 15, 2007. Some nominees may require an earlier deadline for receiving instructions concerning a deposit.
Reimbursement of expenses: The Manager has agreed to reimburse the Trust for the expenses of the Exchange Offer, including the solicitation and agency fees, incurred by the Trust in 28 equal quarterly instalments (due January 1, April 1, July 1 and October 1), together with interest, beginning on January 1, 2009. This obligation will be evidenced by a promissory note to be issued at the closing of the Exchange Offer, which will bear interest from the date of issue at the prime rate of interest posted from time to time by the Trust’s bank.
Dealer manager: National Bank Financial has been engaged as the dealer manager for the Exchange Offer.
Sentry Select Diversified Income Trust: Sentry Select Diversified Income Trust is a closed-end investment trust that aims to maximize distributions to unitholders by investing primarily in high income securities issued by a broad range of royalty and income trusts, real estate investment trusts, and limited partnerships and, to a lesser extent, fixed-income securities and high-yielding common stocks.
Sentry Select Capital Corp.: Sentry Select is a Canadian wealth management company that manages over $8 billion in gross assets as of July 31, 2007. The company offers a diverse range of investment products including closed-end trusts, 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 four reporting issuers listed on the TSX Venture Exchange.
Restrictions: The Exchange Offer is not a take-over bid for any of the Issuers and is not, and under no circumstances is to be construed as, an offering of any Trust Units for sale in the U.S. or to any resident thereof.
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
A preliminary prospectus dated September 18, 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).