Citadel Premium Income Fund

Citadel Premium Income Fund

December 19, 2007 12:45 ET

Citadel Premium Income Fund Announces Regular & Special Distributions

CALGARY, ALBERTA--(Marketwire - Dec. 19, 2007) - Citadel Premium Income Fund ("Citadel Premium" or the "Fund") (TSX:CPF.UN) reports the distribution to unitholders of record at the close of business on December 31, 2007 and payable on January 15, 2008 is $0.085 Cdn per unit.

In addition, Citadel Premium announces the following special distributions:

- a special cash distribution of $0.05 per unit to unitholders of record at the close of business on December 31, 2007 and payable on January 15, 2008; and

- a special non-cash distribution of approximately $0.15 per unit to unitholders of record on December 31, 2007. This non-cash distribution will be in the form of trust units to be distributed on a pro rata basis to unitholders of record on December 31, 2007 and will be included in unitholders' income for the 2007 calendar year. Immediately after this pro rata distribution of trust units, the number of outstanding trust units will be consolidated, such that each unitholder holds, following the consolidation, the same number of trust units as before the non-cash distribution.

The special distributions are required in order to ensure that the Fund, as is required by its Declaration of Trust, is not liable to pay income taxes in respect of its current taxation year ended December 31, 2007.

Throughout the month of November 2007, Citadel Premium repurchased 160,400 units under its mandatory repurchase program when the Fund traded at a discount greater than 5%.

As at December 13, 2007, Citadel Premium's net asset value was $10.28 Cdn per unit. The current portfolio consists of 26% oil and gas royalty trusts, 55% ongoing business trusts, 11% real estate investment trusts, and 8% utilities and infrastructure.

Top Ten Holdings at December 17, 2007:

1) Vermilion Energy Trust
2) Inter Pipeline Fund
3) Primaris Retail Reit
4) ARC Energy Trust
5) Crescent Point Energy Trust
6) Progress Energy Trust
7) IBI Income Fund
8) Energy Savings Income Fund
9) Trinidad Energy Services
10) Keystone North America Inc

Contact Information

  • Citadel Premium Income Fund
    Joe MacDonald
    Executive Vice President, Sales and Marketing