Canadian Income Management Inc.
TSX : CAI.DB

Canadian Income Management Inc.

September 08, 2010 16:01 ET

Canadian Income Management Inc. (TSX: CAI.DB) announces debt substantial issuer bid

TORONTO, ONTARIO--(Marketwire - Sept. 8, 2010) - 

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Canadian Income Management Inc. (the "Corporation") (TSX:CAI.DB) announces that the Toronto Stock Exchange (the "TSX") has accepted its Notice of Debt Substantial Issuer Bid to purchase up to 100% of its issued and outstanding 7% unsecured, subordinated debentures due August 31, 2012 (the "Debentures") at a price of $96.00 (plus any accrued but unpaid interest) per $100 face value of each Debenture (the "Offer"). Currently there are 174,042 Debentures outstanding, with an aggregate face value of $17,404,200.

The Offer is being made through the facilities of the TSX and will be open for acceptance on October 14, 2010 from 10:00 a.m. EST to 12:00 p.m. EST. Holders of the Debentures ("Debentureholders") who wish to accept the Offer must request that their investment adviser, investment dealer, bank, trust company or other nominee effect the transaction for them.

The Offer is intended to provide liquidity to the Debentureholders and the management of the Corporation believes that retiring Debentures will be accretive to the units of Canadian Income Management Trust (the "Trust").

Sentry Select Capital Inc. ("Sentry"), the investment manager of both the Corporation and the Trust, is of the view that the current and anticipated future yield environment in respect of income and royalty trusts may raise difficulties in meeting the interest obligations of the Debentures and the repayment obligations upon maturity, therefore, Debentureholders are strongly urged to consider the Offer. Sentry will continue to monitor the situation and may consider further strategic alternatives in the future.

Debentureholders may obtain a copy of the Notice of Debt Substantial Issuer Bid, without charge, by contacting Client Services at 1-888-730-4623. A copy of the Notice of Debt Substantial Issuer Bid is also available through CIBC World Markets Inc., the dealer manager, by contacting Greg English at greg.english@cibc.ca or 416-956-3994.

Sentry Investments

Sentry Investments is a Canadian wealth management company that offers a diverse range of investment products including closed-end investment funds, mutual funds, principal-protected notes and flow-through limited partnerships, covering a variety of domestic and global mandates.

Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to either Sentry or the Corporation. The forward-looking statements are not historical facts but reflect Sentry's or the Corporation's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including, but not limited to, the ability of the Corporation to repurchase those Debentures tendered to the Debt Substantial Issuer Bid. Although both Sentry and the Corporation believe that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein.

Canadian Income Management Inc.
The Exchange Tower
130 King Street West
Suite 2850, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone: (416) 861-8729
Fax: (416) 364-5615

Contact Information

  • Canadian Income Management Inc.
    Client Services
    (broker/investor inquiries and media inquiries)
    1-800-730-4623
    416-364-1197 (FAX)
    info@sentry.ca
    www.sentry.ca