TORONTO Sentry Select Capital Corp.(the “Corporation”) is pleased to announce the filing of the preliminary prospectus for the Initial Public Offering of 7.0% unsecured subordinated debentures, offered by Canadian Income Management Inc., and trust securities, offered by the Canadian Income Management Trust (the “Trust”). The debentures and the trust securities will be sold as a bundled unit consisting of one $100 par value of debenture and 15 trust securities at $2.00 per trust security, with a minimum purchase of 25 bundled units at a cost of $3,250. Each trust security consists of one trust unit and one warrant entitling the holder to purchase one additional trust unit at $2.60 per trust unit. The debentures, the trust units and the warrants will separate on closing of the offering.Investment Strategy The net proceeds of the offering will be invested in Canadian Income Management LP, which will in turn invest the net proceeds in a diversified portfolio of income trusts, royalty trusts and REITS to be actively managed by Sentry Select Capital Corp., the Investment Manager. The initial asset mix of the portfolio will be changed over time based on the investment managers outlook of capital market conditions, prospects, and relative valuations of various market sectors.
Investment Objectives The investment objectives of the Corporation include (i) to provide Debentureholders with semi-annual interest payments at a rate of 7% per annum. (ii) to preserve and potentially enhance the value of the portfolio in order to repay the Debentures at maturity.
The investment objectives of the trust are (i) to provide unitholders with semi-annual cash distributions, initially expected to be $0.155 per trust unit per annum (7.75% of the original issue price of the trust security), and (ii) to preserve and potentially enhance the value of the portfolio in order to return to Unitholders at least $2.00 per trust unit upon the termination of the trust in 2012.
Qualifying The trust units and warrants will be qualified investments for RRSPs, RRIFs, DPSPs and RESPs. The debentures will not be qualified investments for deferred plans.
The Agent Canaccord Capital Corporation will act as the exclusive agent with respect to the offering.
The Investment Manager Sentry Select Capital Corp. is a wealth management company with gross assets under management in excess of $9 billion. It is the portfolio manager of 18 closed-end trusts, 4 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 enquiries or Brian McOstrich for media enquiries. Tel: 1-888-246-6656 Fax: 416-364-1197 firstname.lastname@example.org www.sentryselect.com
A preliminary prospectus relating to these securities has been filed with securities commissions or similar authorities in each of the provinces of Canada, except Quebec, but has not yet become final for the purpose of a distribution to the public. This press 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 of Canada prior to the time a receipt for the final prospectus or other authorization is obtained from the securities commission or similar authority in such province.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
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).