Resolve Business Outsourcing Income Fund

Resolve Business Outsourcing Income Fund

March 17, 2006 08:45 ET

Resolve Business Outsourcing Income Fund Announces Completion of $225,000,000 Initial Public Offering of Trust Units

TORONTO, ONTARIO--(CCNMatthews – Mar. 17, 2006) –

Attention Business Editors:


Resolve Business Outsourcing Income Fund (the "Fund")(TSX:RBO.UN) today announced the successful completion of its initial public offering of 22,500,000 ordinary trust units of the Fund (the "Units") at a price of $10.00 per Unit for total gross proceeds of $225,000,000. The Units are traded on the Toronto Stock Exchange under the symbol RBO.UN. The Fund also granted to the underwriters of the offering an over-allotment option to acquire within 30 days following closing an additional 2,250,000 Units on the same terms and conditions. The lead underwriter for the offering is RBC Capital Markets.

The Fund has used the proceeds of the offering to acquire Resolve Corporation and its subsidiaries (collectively, "Resolve") and CSRS Holdings, Ltd. and its subsidiaries (collectively, "CSRS"). After giving effect to these transactions, the Fund indirectly holds an approximately 70.5% interest in the combined Resolve/CSRS business (77.3% if the underwriters' over-allotment option is exercised in full).

The Fund expects to make its first cash distribution to unitholders on or about May 15, 2006 in respect of the period from closing to April 30, 2006. Subsequent regular distributions in the estimated amount of $0.0833 per Unit are anticipated to be paid each month thereafter.

The Units have not been, nor will be, registered under the United States Securities Act of 1933 (the "U.S. Securities Act"). Accordingly, the Units may not be offered, sold or delivered within the United States, absent registration or pursuant to a transaction that does not require registration under the U.S. Securities Act or any applicable state securities laws of the United States. This statement does not constitute an offer to sell or solicitation of an offer to buy any of the Units in the United States.

About Resolve Business Outsourcing Income Fund

Resolve Business Outsourcing Income Fund is an unincorporated, open-ended, limited purpose trust established under the laws of the Province of Ontario to invest in Resolve Corporation and CSRS Holdings Ltd ("CSRS"). The Fund indirectly holds an approximately 70.5% interest in the combined Resolve/CSRS business. The Fund units are listed on the Toronto Stock Exchange under the symbol RBO.UN.

About Resolve Corporation

With over 3,700 employees in its 24 locations across North America, Resolve Corporation has a 35-year history in providing business process outsourcing services in four key areas: Financial and Administrative Solutions; Call Centre And Customer Support; Marketing and Promotional Programs; and Supply Chain Management and Fulfillment Services. Resolve serves many blue chip customers across a diversified range of industries including Financial Services, Retail, Consumer Goods, Manufacturing, Government and other specialty markets. The company also manages a large portfolio of student and consumer loans for major Canadian banks, provincial and federal governments.

About CSRS

Established in 1989, CSRS is the largest Personal Property Security Act (PPSA) registration and search provider to the Canadian financial, automotive and legal industries. With over 200 employees, CSRS handles more than three million registrations and searches per year for its major customers including large Canadian financial institutions.

Certain statements in this press release may constitute "forward looking" statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Fund, Resolve or CSRS, or industry results to be materially different from any future results, performance or achievements or opportunities expressed or implied by such forward-looking statements. When used in this press release, such statements use such words as "may", "will", "expect", "believe", "plan", "could" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this prospectus. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under "Risk Factors" in the Fund's prospectus. Although the forward-looking statements contained in this press release are based upon what management believes are reasonable assumptions, none of the Fund, Resolve or CSRS can assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and the filing of the preliminary prospectus. None of the Fund, Resolve or CSRS assumes any obligation to update or revise them to reflect new events or circumstances.

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Contact Information

  • Resolve Corporation
    Dave Horton
    Executive Vice President, Finance and Administration
    (440) 572-0725

    Media Inquiries:
    Nolan Reeds
    (416) 979-1120