Rights Offering Sentry Select Diversified Income Trust (the “Trust”) announces that it will issue Rights to subscribe for Trust Units to its Unitholders of record at the close of business (Toronto time) on August 30, 2005. Rights and Subscription Price Unitholders of record on August 30, 2005 will receive one Right for each Trust Unit held. Three Rights will entitle the holder of the Rights to purchase one Trust Unit (the “Basic Subscription Privilege”) at a price of $5.25 until 4 PM (Toronto time) on September 22, 2005. Discount to NAV The subscription price of $5.25 represents a discount of 9.6 per cent to the net asset value per Trust Unit on August 18, calculated to give effect to the special distribution of $0.25 per unit previously announced by the Trust and payable on or about September 8, 2005. Proceeds and Expenses of the Offering If all of the Rights are exercised, the Trust will issue approximately 46.5 million Trust Units for proceeds of approximately $237.2 million after deducting estimated expenses of $7.0 million. Sentry Select Capital Corp., the Manager of the Trust (the “Manager”) has agreed to pay the expenses of the Rights Offering incurred by the Trust, together with interest thereon, over five years from the date of closing. The first payment will occur in January 2007. Additional Trust Units Holders of Rights who fully exercise their Rights are entitled to subscribe pro rata for additional Trust Units, if available, that were not subscribed for initially, at a price equal to the subscription price. Step Up Privilege Holders of Rights not evenly divisible by three will be entitled to round up subscriptions to the next highest whole number of Trust Units. Listing and Trading The Rights will begin trading on the Toronto Stock Exchange (TSX) on August 26, 2005 under the symbol SDT.RT. The TSX has conditionally approved the listing of the Units issuable upon the exercise of the Rights subject to the satisfaction of certain standard listing conditions.
Use of Proceeds The Trust will use the net proceeds of the Rights Offering to acquire, in the open market and through private placements, securities in royalty trusts, unit trusts, income trusts, real estate investment trusts, limited partnerships and other similar issues, in accordance with the Trust’s prevailing investment policies and restrictions.
The Manager intends to increase the borrowings under the Trust’s existing credit facility prior to the closing of the Rights Offering to make investments consistent with the Trust’s investment objectives and to repay such borrowings following the closing of the Rights Offering. Dealer Manager National Bank Financial Inc. has been engaged to be the Dealer Manager for the Rights Offering. Special Capital Gains Distribution The Trust previously announced that it will make a special distribution of $0.25 per Trust Unit in respect of net realized capital gains. Such special distribution will be payable on or about September 8, 2005 to Unitholders of record at the close of business (Toronto time) on August 31, 2005 (the “Distribution Record Date”). The Trust Units issued on the exercise of the Rights being offered under the Rights Offering will not be outstanding on the Distribution Record Date and, accordingly, the special distribution will not be paid on such Units. Sentry Select Diversified Income Trust Sentry Select Diversified Income Trust (TSX: SDT.UN) is a closed-end trust with the objective of maximizing distributions to Unitholders by investing primarily in a broad range of royalty and income trusts, real estate investment trusts and other high-yielding securities. The Manager Sentry Select Capital Corp. is the manager of the Trust. Sentry Select is also responsible for providing or arranging for the provision of administrative services required by the Trust. Sentry Select is a wealth management company with gross assets under management in excess of $7 billion. It is the portfolio manager of 17 closed-end trusts, 3 flow-through limited partnerships and 11 mutual funds; the manager of an investment corporation; the marketing agent for a series of principal-protected notes; and the administrator of 3 closed-end trusts. More Information - Investor Services for broker/investor inquiries or Brian McOstrich for media inquiries. Tel: 1-888-246-6656 Fax: 416-364-1197 email@example.com www.sentryselect.com
Les documents (y compris les communiqués de presse) se rapportant aux divers fonds d'investissement pour lesquels Sentry agit à titre de gestionnaire ou de conseiller ne sont fournis qu'à titre informatif. Ces documents ne peuvent être considérés comme étant exhaustifs ou exempts d'erreur sans un examen approfondi de la totalité des documents se rapportant à un fonds d'investissement en particulier disponibles sur SEDAR (www.sedar.com).