Sentry Select Diversified Income Trust (TSX: SDT.UN) announces exchange ratios for the Exchange Offer
TORONTO: Sentry Select Capital Corp. (“Sentry Select” or “Manager”) is pleased to announce the exchange ratios for the Sentry Select Diversified Income Trust (the “Trust”) Exchange Offer as announced in the preliminary prospectus of the Trust dated September 18, 2007.Deposit date and closing: The Exchange Offer was open for acceptance by holders of securities of the Issuers 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: The number of Trust Units issuable for the securities of each Issuer (the “Exchange Ratio”) was 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 (the “Unit Price”).Unit Price and net asset value: The 3 day Unit Price for the Trust is $4.7471 and the net asset value of the Trust, as of October 11, 2007 was $5.24 per unit.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.Acceptance: The following table specifies the weighted average trading price of each eligible security and the Exchange Ratio used to determine the number of units to be issued for each eligible security. The Exchange Ratios and other information disclosed below will be included in the final prospectus to be filed with the securities regulatory authorities across Canada. The Exchange Ratios are rounded down to four decimal places.
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