Brascan SoundVest Rising Distribution Split Trust

Brascan SoundVest Rising Distribution Split Trust

March 16, 2005 10:46 ET

Brascan SoundVest Rising Distribution Split Trust IPO Closes


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BRASCAN SOUNDVEST RISING DISTRIBUTION SPLIT TRUST

MARCH 16, 2005 - 10:46 ET

Brascan SoundVest Rising Distribution Split Trust IPO
Closes

TORONTO, ONTARIO--(CCNMatthews - March 16, 2005) - Brascan Asset
Management Inc. announced that Brascan SoundVest Rising Distribution
Split Trust (the "Trust") has completed its initial public offering of
7.2 million trust units (the "Capital Units") and 7.2 million preferred
securities (the "Preferred Securities") at a price of C$15.00 per
Capital Unit and C$10.00 per Preferred Security, for gross proceeds of
C$180 million.

The Trust has granted the agents an over-allotment option, exercisable
for a period of 30 days, which allows the agents to offer additional
Capital Units and Preferred Securities in an amount equal to 15%
of the aggregate number of Capital Units and Preferred Securities,
respectively, sold pursuant to the Trust's initial public offering.

The Capital Units and Preferred Securities commenced trading on the
Toronto Stock Exchange on Wednesday, March 16, 2005 under the symbols
BSD.UN and BSD.PR.A, respectively.

The Trust will actively manage a diversified portfolio of 30 to 40
selected income trusts with a focus on income trusts that the Investment
Advisor believes have the greatest potential to increase annual
distributions. The Trust has a dual security structure, consisting of
Capital Units and Preferred Securities. This dual structure offers
investors flexibility to select the type of security and tax character
for distributions best suited to their investment needs.

The Trust's Preferred Securities bear interest at 6% per annum, on the
original subscription price of $10.00, with interest payable quarterly.
The Preferred Securities have been rated Pfd-2 by Dominion Bond Rating
Service Limited.

The Trust's Capital Units target an initial annual yield of 9% for the
period ending December 31, 2005, with distributions payable monthly. The
Capital Units are intended to provide unitholders with tax efficient and
growing monthly cash distributions, and capital appreciation on the
Trust's portfolio.

The Trust is managed by Brascan Rising Distribution Management Ltd., a
subsidiary of Brascan Asset Management. SoundVest Capital Management
Ltd., which is 50% owned by Brascan Asset Management, will act as the
investment advisor and portfolio manager of the Trust.

The offering was co-led by RBC Capital Markets and CIBC World Markets
Inc. and includes a syndicate of underwriters including BMO Nesbitt
Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD
Securities Inc., Raymond James Ltd., Canaccord Capital Corporation,
Desjardins Securities Inc., Dundee Securities Corporation, HSBC
Securities (Canada) Inc., Trilon Securities Corporation, First
Associates Investments Inc., and Wellington West Capital Inc. A copy of
the final prospectus may be obtained through www.sedar.com

Brascan Asset Management is a leading North American asset manager
focused primarily on alternative investments. Brascan Asset Management
invests in industry sectors in which it is able to realize superior
risk-adjusted returns by leveraging the industry and operational
expertise of Brascan and capitalizing on the synergies across its
various funds. With $7 billion of assets under management, its clients
include pension funds, life insurance companies, financial institutions,
corporations and high net-worth individuals.

Note: This press release may contain "forward-looking statements. The
words "believe", "expect", "anticipate", "intend", "estimate" and other
expressions which are predictions of or indicate future events and
trends and which do not relate to historical matters identify forward
looking statements. Reliance should not be placed on forward-looking
statements because they involve known and unknown risks, uncertainties
and other factors, which may cause the actual results, performance or
achievements of the company to differ materially from anticipated future
results, performance or achievement expressed or implied by such
forward-looking statements. Factors that could cause actual results to
differ materially from those set forward in the forward looking
statements include general economic conditions, interest rates,
availability of equity and debt financing and other risks. Management
cannot provide assurance that the actual results or developments will be
realized or, even if substantially realized, that they would have the
expected consequences to, or effects on, the Fund. The Fund undertakes
no obligation to publicly update or revise any forward looking
statements, whether as a result of new information, future events or
otherwise.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Brascan Rising Distribution Management Ltd.
    Mr. Bruce Robertson
    President and Chief Executive Officer
    (416) 363-0061
    brobertson@brascanam.com