Citadel Premium Income Fund

Citadel Premium Income Fund
Citadel Diversified Investment Trust

Citadel Diversified Investment Trust
Citadel S-1 Income Trust Fund

Citadel S-1 Income Trust Fund
Citadel HYTES Fund

Citadel HYTES Fund
Citadel SMaRT Fund

Citadel SMaRT Fund
Series S-1 Income Fund

Series S-1 Income Fund
Income & Equity Index Participation Fund

Income & Equity Index Participation Fund
Energy Plus Income Trust

Energy Plus Income Trust
Citadel Stable S-1 Income Fund

Citadel Stable S-1 Income Fund
Sustainable Production Energy Trust

Sustainable Production Energy Trust
Equal Weight Plus Fund

Equal Weight Plus Fund
Financial Preferred Securities Corporation

Financial Preferred Securities Corporation

November 24, 2006 14:26 ET

Citadel Group of Funds: Citadel Premium Income Fund Announces Exchange Offering

CALGARY, ALBERTA--(CCNMatthews - Nov. 24, 2006) - Citadel Premium Income Fund (TSX:CPF.UN), Citadel Diversified Investment Trust (TSX:CTD.UN), Citadel S-1 Income Trust Fund (TSX:SDL.UN), Citadel HYTES Fund (TSX:CHF.UN), Citadel SMaRT Fund (TSX:CRT.UN), Series S-1 Income Fund (TSX:SRC.UN), Income & Equity Index Participation Fund (TSX:IEP.UN), Energy Plus Income Trust (TSX:EPF.UN), Citadel Stable S-1 Income Fund (TSX:CSR.UN), Sustainable Production Energy Trust (TSX:SPU.UN), Equal Weight Plus Fund (TSX:EQW.UN), Financial Preferred Securities Corporation (TSX:FPR.PR.A).

CGF Funds Management Ltd. is pleased to announce that Citadel Premium Income Fund (TSX:CPF.UN) (the "Trust") has filed a preliminary short-form prospectus across Canada, qualifying units of the Trust (the "Trust Units") to be issued in connection with its exchange offer (the "Exchange Offer") for securities of issuers (the "Issuers") listed below.

Deposit date and closing: The Exchange Offer will be open for acceptance by holders of securities of the Issuers until 4:00 pm (Toronto time) on December 18, 2006 (the "Deposit Date"). The closing is expected to occur on or about December 28, 2006.

Exchange ratio: Trust Units may be purchased by the exchange of eligible securities of any Issuer named below. The number of Trust Units issuable for the securities of each Issuer (the "Exchange Ratio") will be determined by dividing the weighted average trading price of such securities on the Toronto Stock Exchange ("TSX") during the period of three consecutive trading days ending on the Deposit Date (the "Pricing Period") by the net asset value per Trust Unit on the Deposit Date.

Acceptance: The Exchange Offer will remain open for acceptance until 4:00 p.m. (Toronto time) on December 18, 2006. The Exchange Offer may be accepted only by means of a book-entry deposit through CDS. Holders of securities of an Issuer who wish to accept the Exchange Offer must request their CDS Participant to effect the deposit for them, and should do so no later than December 15, 2006, to ensure that their securities are included in the deposit to be made through CDS on December 18, 2006. Some nominees may require an earlier deadline for receiving instructions concerning a deposit.


A & W Revenue Royalties Income Fund
Acadian Timber Income Fund
Advantage Energy Income Fund
Aeroplan Income Fund
AG Growth Income Fund
Alexis Nihon REIT
Allied Properties REIT
AltaGas Income Trust
Altus Group Income Fund
Amtelecom Income Fund
ARC Energy Trust
Arctic Glacier Income Fund
Armtec Infrastructure Income Fund
Associated Brands Income Fund
Atlantic Power Corporation
ATS Andlauer Income Fund
Avenir Diversified Income Trust
Badger Income Fund
Baytex Energy Trust
Bell Aliant Regional Communications Income Fund
Bell Nordiq Income Fund
BFI Canada Income Fund
Boardwalk REIT
Bonavista Energy Trust
Bonnett's Energy Services Trust
Bonterra Energy Income Trust
Boston Pizza Royalties Income Fund
Builders Energy Services Trust
Calloway REIT
Canada Cartage Diversified Income Fund
Canadian Apartment Properties REIT
Canadian Crude Separators Income Fund
Canadian Energy Services L.P.
Canadian Helicopters Income Fund
Canadian Hotel Income Properties REIT
Canadian Oil Sands Trust
Canadian REIT
Canetic Resources Trust
Canexus Income Fund
Canfor Pulp Income Fund
CanWest Mediaworks Income Fund
Cargojet Income Fund
Cathedral Energy Services Income Fund
Chartwell Seniors Housing REIT
Chemtrade Logistics Income Fund
CI Financial Income Fund
Cineplex Galaxy Income Fund
Cinram International Income Fund
CML Healthcare Income Fund
Coast Wholesale Appliance Income Fund
Cominar REIT
Consumers' Waterheater Income Fund
Contrans Income Fund
Countryside Power Income Fund
Crescent Point Energy Trust
Crombie Real Estate Investment Trust
The Data Group Income Fund
Davis & Henderson Income Fund
Daylight Resources Trust
Direct Cash Income Fund
Duke Energy Income Fund
Dundee REIT
E.D. Smith Income Fund
Enbridge Income Fund
Energy Savings Income Fund
Enerplus Resources Fund
Enterra Energy Trust
Essential Energy Services Trust
Eveready Income Fund
Fairborne Energy Trust
First National Financial Income Fund
Focus Energy Trust
Fording Canadian Coal Trust
Foremost Industries Income Fund
Fort Chicago Energy Partners L.P.
FP Newspapers Income Fund
Freehold Royalty Trust
Futuremed Healthcare Income Fund
Gateway Casinos Income Fund
Genivar Income Fund
Gienow Windows & Doors Income Fund
GMP Capital Trust
Golf Town Income Fund
Great Lakes Carbon Income Fund
Harvest Energy Trust
High Artic Energy Services Trust
Home Equity Income Trust
IBI Income Fund
Innvest REIT
Inter Pipeline Fund
Jazz Air Income Fund
K-Bro Linen Income Fund
KCP Income Fund
Keg Royalties Income Fund
Keyera Facilities Income Fund
Keystone North America Inc.
Labrador Iron Ore Royalty Income Fund
Lakeport Brewing Income Fund
Legacy Hotels REIT
Liquor Barn Income Fund
Liquor Stores Income Fund
Livingston International Income Fund
Macquarie Power Income Fund
Medical Facilities Corporation
Medisys Health Group Income Fund
Menu Foods Income Fund
Morguard REIT
Morneau Sobeco Income Fund
Movie Distribution Income Fund
Mullen Group Income Fund
NAL Oil and Gas Trust
New Flyer Industries Inc.
Newalta Income Fund
Newport Partners Income Fund
Noranda Income Fund
North West Company Fund
Northern Property REIT
Northland Power Income Fund
OFI Income Fund
Paramount Energy Trust
PDM Royalties Income Fund
Peak Energy Services Trust
Pembina Pipelines Income Fund
Pengrowth Energy Trust
Penn West Energy Trust
Peyto Energy Trust
Phoenix Technology Income Fund
Pizza Pizza Royalty Income Fund
Pollard Banknote Income Fund
Precision Drilling Trust
Premium Brands Income Fund
Primaris Retail REIT
Primary Energy Recycling Corp.
Prime Restaurants Royalty Income Fund
PrimeWest Energy Trust
Priszm Canadian Income Fund
Progress Energy Trust
Provident Energy Trust
Resolve Business Outsourcing Income Fund
Retirement Residences REIT
Richards Packaging Income Fund
Rogers Sugar Income Fund
Royal Host REIT
Royal LePage Franchise Services Fund
Royal Utilities Income Fund
Scott's REIT
Second Cup Royalty Income Fund
Shiningbank Energy Trust
SIR Royalty Income Fund
Sleep Country Canada Income Fund
Sound Energy Trust
Specialty Foods Group Income Fund
Spinrite Income Fund
Sterling Shoes Income Fund
Strongco Income Fund
Student Transportation of America Ltd.
Sunrise Senior Living Real Estate Investment Trust
Superior Plus Income Fund
Supremex Income Fund
Taylor Gas Liquids L.P.
Teranet Income Fund
TerraVest Income Fund
The Brick Group Income Fund
TimberWest Timber Trust
Total Energy Services Trust
TransAlta Power L.P.
TransForce Income Fund
Tree Island Wire Income Fund
Trilogy Energy Trust
Trimac Income Fund
Trinidad Energy Services Income Trust
UE Waterheater Income Fund
Vermilion Energy Trust
Versacold Income Fund
Vicwest Income Fund
Voxcom Income Fund
Wajax Income Fund
Wellco Energy Services Trust
Westfield REIT
Westshore Terminals Income Fund
Whiterock REIT
Yellow Pages Income Fund
Zargon Energy Trust

Dealer Managers: CIBC World Markets Inc, BMO Nesbit Burns Inc. and TD Securities Inc. have been engaged as co-dealer managers for the Exchange Offer.

Citadel Premium Income Fund: Citadel Premium Income Fund is a closed-end trust with the investment objectives of:

(a) Distributions: to provide holders of Trust Units with monthly cash distributions in an amount determined and announced from time to time by CGF Funds Management Ltd. (in its capacity as the administrator of the Trust having regard to the Trust's then current portfolio securities and the prevailing economic and market conditions, which is targeted at $0.085 per Citadel Unit until July 2007;

(b) Opportunity for Capital Appreciation: to provide Unitholders with the opportunity for capital appreciation in the net asset value of Citadel; and

(c) Distribution of Net Assets: to distribute the net assets of Citadel to Unitholders on the termination date of Citadel.

Website: To find out more about the Trust, including portfolio holdings, net asset values and investment objectives, please go to

Benefits to Exchanging: The potential benefits to holders of eligible issuer securities who accept the Exchange Offer include the following:

1. in certain circumstances, a holder may be able to realize a capital loss for tax purposes by exchanging into Trust Units while still maintaining investment exposure to the income fund sector;

2. the holder remains exposed to the income fund asset class. Trust Units provide diversification over a broad range of trusts and a timely opportunity for holders of certain royalty trusts, income trusts, real estate investment trusts and limited partnerships to participate in a diversified, actively managed portfolio of high quality trusts with no cash outlay;

3. the holder receives active management of an income and royalty trust portfolio seeking to provide unitholders with distributable cash flow while at the same time providing an opportunity to grow net asset value;

4. the market price of the Trust Units are supported by a mandatory market purchase program whereby the Trust will purchase Trust Units offered in the market at the prevailing market price if that price is less than 95% of the net asset value per Trust Unit determined as at the last valuation date, up to a maximum in any calendar quarter of 1.25% of the number of Trust Units outstanding at the beginning of that quarter; and

5. Trust Units include an annual redemption feature whereby Trust Units can be redeemed in June of each year at the Redemption Value (net asset value less $0.20 per Trust Units and the costs incurred in funding the redemption).

Citadel Group of Funds: The Citadel Group of Funds is a group of income oriented structured product funds providing investment opportunities to the public. The Citadel Group currently consists of 12 exchange-listed closed-end funds and corporations, including preferred securities and one flow-through limited partnership. The Citadel Group is one of the largest groups of funds in the income trust sector. As of June 30, 2006, the group had over $2.8 billion in gross assets under administration.

Restrictions: The Exchange Offer is not a take-over bid for any of the issuers and is not, and under no circumstances is to be construed as, an offering of any Trust Units for sale in the U.S. or to any resident thereof.

Contact Information

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