Benvest New Look Income Fund

Benvest New Look Income Fund

May 19, 2006 09:00 ET

Benvest New Look Income Fund Announces the Second Increase in its Monthly Distribution Commencing with May 2006

MONTREAL, QUEBEC--(CCNMatthews - May 19, 2006) - : Benvest New Look Income Fund (TSX:BCI.UN) (the "Fund") today announced that a cash distribution of $0.0458 per unit has been declared for the period of May 1st through May 31st, 2006. The distribution will be paid to unitholders of record at the close of business on May 31st, 2006 and will be paid on June 20th, 2006. It represents a 10% increase over the monthly distribution which was $0.0416 per unit since July 2005, raising the annualized distribution to $0.55 per unit from $0.50 per unit currently. Since becoming an income fund in May 2005, this is the second increase in distributions and the new distribution rate represents a 22.1% increase over the initial distribution rate.

The Fund's operating subsidiary, New Look Eyewear Inc., has also declared an increased dividend for May 2006 on its exchangeable shares of $0.0439 per exchangeable share, payable on June 20th, 2006 to the holders of exchangeable shares of record as at the close of business on May 31st, 2006. The amount of the dividend includes an adjustment of $0.0096 per share to assure a fair equivalence of yield for the months of January to May 2006 between units of the Fund and exchangeable shares of New Look Eyewear Inc., taking corporate income tax into consideration. Thereafter, the adjustment will be made on a monthly basis. These shares, which are not freely tradable, have been exchangeable on a one-for-one basis into units of the Fund since May 1st, 2006. The increase in New Look Eyewear Inc. dividends is equivalent to the increase in distributions (of 22.1%) by the Fund, after taking into account income tax considerations.

On May 1, 2005, Benvest Capital Inc. was converted into an income trust named the Benvest New Look Income Fund, the purpose of which is to hold securities of New Look Eyewear Inc. This subsidiary is a leading enterprise in the eye care industry in Eastern Canada, with growth opportunities based on demographic trends and the consolidation of the industry in Canada. As of April 30th, 2006, 5,453,335 units of the Fund are issued and outstanding. In addition, 4,196,864 exchangeable shares of the subsidiary are also issued and outstanding.

This press release may contain certain forward-looking statements that reflect the current views and / or expectations of Benvest New Look Income Fund with respect to its performance, business, and future events. Such statements are subject to a number of risks, uncertainties, and assumptions. Actual results and events may vary.

Contact Information

  • Benvest New Look Income Fund
    Lise Melanson
    (514) 877-4299, ext. 2234.