NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO: Canadian Income Management Inc. (the "Corporation") (TSX:CAI.DB) wishes to remind holders of the debentures ("Debentureholders") of the Thursday, October 14, 2010 redemption window of the Corporation's upcoming Debt Substantial Issuer Bid.
On September 8, 2010, the Corporation announced that that the Toronto Stock Exchange (the "TSX") had accepted its Notice of Debt Substantial Issuer Bid to purchase up to 100% of its issued and outstanding 7% unsecured, subordinated debentures due August 31, 2012 (the "Debentures") at a price of $96.00 (plus any accrued but unpaid interest) per $100 face value of each Debenture (the "Offer"). Currently there are 174,042 Debentures outstanding, with an aggregate face value of $17,404,200.
Timing of the Offer: The Offer is being made through the facilities of the TSX and will be open for acceptance on Thursday, October 14, 2010 from 10:00 a.m. EST to 12:00 p.m. EST.
Debentureholders who wish to accept the Offer must request that their investment adviser, investment dealer, bank, trust company or other nominee effect the transaction for them.
Rationale for the Offer:The Offer is intended to provide liquidity to the Debentureholders and the management of the Corporation believes that retiring Debentures will be accretive to the units of Canadian Income Management Trust (the "Trust").
Sentry Select Capital Inc. ("Sentry"), the investment manager of both the Corporation and the Trust, is of the view that the current and anticipated future yield environment in respect of income and royalty trusts may raise difficulties in meeting the interest obligations of the Debentures and the repayment obligations upon maturity, therefore, Debentureholders are strongly urged to consider the Offer. Sentry will continue to monitor the situation and may consider further strategic alternatives in the future.
Debentureholders may obtain a copy of the Notice of Debt Substantial Issuer Bid, without charge, by contacting Client Services at 1-888-730-4623. A copy of the Notice of Debt Substantial Issuer Bid is also available through CIBC World Markets Inc., the dealer manager, by contacting Greg English at firstname.lastname@example.org or 416-956-3994.
Sentry Investments: Sentry Investments is a Canadian asset management company that offers a diverse range of investment products including mutual funds, hedge funds, flow-through limited partnerships, closed-end trusts and other alternative investments, covering a variety of domestic and global mandates.
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).