Citadel Premium Income Fund
TSX : CPF.UN

Citadel Premium Income Fund

December 19, 2006 20:10 ET

Citadel Premium Income Fund Announces Exchange Offering

CALGARY, ALBERTA--(CCNMatthews - Dec. 19, 2006) - CGF Funds Management Ltd. is pleased to announce the exchange ratios for the Citadel Premium Income Fund (the "Trust") (TSX:CPF.UN) Exchange Offer as announced in the preliminary prospectus of the Trust dated November 23, 2006.

Deposit date and closing: The Exchange Offer was 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: The number of Trust Units issuable for the securities of each Issuer (the "Exchange Ratio") was 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.

Net Asset Value: The net asset value of the Trust on the Deposit Date was $10.72 per Trust Unit.

Acceptance: Acceptances have been received which would result in the issuance of 1,447,251 Trust Units (assuming no withdrawals) at a price of $10.72 per Trust Unit. The following table specifies the weighted average trading price of each eligible security and the Exchange Ratio used to determine the number of Trust Units to be issued for each eligible security. The Exchange Ratios and other information disclosed below will be included in the final prospectus of the Trust to be filed with the securities regulatory authorities across Canada. The Exchange Ratios are rounded to five decimal places.



Issuers:

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Weighted
Average
Stock Trading Exchange
Issuer Symbol Price Ratio
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A & W Revenue Royalties Income
Fund AW-U $ 13.13990 $ 1.22574
Acadian Timber Income Fund ADN-U $ 8.67435 $ 0.80917
Advantage Energy Income Fund AVN-U $ 13.59770 $ 1.26844
Aeroplan Income Fund AER-U $ 17.08960 $ 1.59418
AG Growth Income Fund AFN-U $ 13.60990 $ 1.26958
Alexis Nihon REIT AN-U $ 16.83670 $ 1.57059
Allied Properties REIT AP-U $ 20.81963 $ 1.94213
AltaGas Income Trust ALA-U $ 26.87300 $ 2.50681
Altus Group Income Fund AIF-U $ 9.92900 $ 0.92621
Amtelecom Income Fund AMT-U $ 10.81620 $ 1.00897
ARC Energy Trust AET-U $ 23.02400 $ 2.14776
Arctic Glacier Income Fund AG-U $ 12.54700 $ 1.17043
Armtec Infrastructure Income
Fund ARF-U $ 17.35150 $ 1.61861
Associated Brands Income Fund ABF-U $ 0.52800 $ 0.04925
Atlantic Power Corporation ATP-U $ 10.69450 $ 0.99762
ATS Andlauer Income Fund ATS-U $ 11.25180 $ 1.04961
Avenir Diversified Income Trust AVF-U $ 7.03010 $ 0.65579
Badger Income Fund BAD-U $ 15.68330 $ 1.46299
Baytex Energy Trust BTE-U $ 22.37630 $ 2.08734
Bell Aliant Regional
Communications Income Fund BA-U $ 26.75740 $ 2.49603
Bell Nordiq Income Fund BNQ-U $ 14.94120 $ 1.39377
BFI Canada Income Fund BFC-U $ 27.68640 $ 2.58269
Boardwalk REIT BEI-U $ 42.80570 $ 3.99307
Bonavista Energy Trust BNP-U $ 28.82650 $ 2.68904
Bonnett's Energy Services Trust BT-U $ 14.86170 $ 1.38635
Bonterra Energy Income Trust BNE-U $ 26.42930 $ 2.46542
Boston Pizza Royalties Income
Fund BPF-U $ 15.24800 $ 1.42239
Builders Energy Services Trust BET-U $ 11.61430 $ 1.08342
Calloway REIT CWT-U $ 27.81030 $ 2.59424
Canada Cartage Diversified
Income Fund TRK-U $ 9.14910 $ 0.85346
Canadian Apartment Properties
REIT CAR-U $ 18.88660 $ 1.76181
Canadian Crude Separators
Income Fund CCR-U $ 36.50560 $ 3.40537
Canadian Energy Services L.P. CEU-U $ 6.57700 $ 0.61353
Canadian Helicopters Income
Fund CHL-U $ 8.37960 $ 0.78168
Canadian Hotel Income Properties
REIT HOT-U $ 15.01490 $ 1.40064
Canadian Oil Sands Trust COS-U $ 32.89740 $ 3.06879
Canadian REIT REF-U $ 30.90420 $ 2.88285
Canetic Resources Trust CNE-U $ 15.94000 $ 1.48694
Canexus Income Fund CUS-U $ 6.47310 $ 0.60383
Canfor Pulp Income Fund CFX-U $ 11.92720 $ 1.11261
CanWest Mediaworks Income
Fund CWM-U $ 6.69620 $ 0.62465
Cargojet Income Fund CJT-U $ 8.43200 $ 0.78657
Cathedral Energy Services Income
Fund CET-U $ 10.06800 $ 0.93918
Chartwell Seniors Housing REIT CSH-U $ 13.54365 $ 1.26340
Chemtrade Logistics Income Fund CHE-U $ 7.83660 $ 0.73103
CI Financial Income Fund CIX-U $ 26.46370 $ 2.46863
Cineplex Galaxy Income Fund CGX-U $ 12.94440 $ 1.20750
Cinram International Income Fund CRW-U $ 22.98760 $ 2.14437
CML Healthcare Income Fund CLC-U $ 14.04520 $ 1.31019
Coast Wholesale Appliance
Income Fund CWA-U $ 7.12840 $ 0.66496
Cominar REIT CUF-U $ 22.37640 $ 2.08735
Consumers' Waterheater Income
Fund CWI-U $ 13.45580 $ 1.25521
Contrans Income Fund CSS-U $ 11.59220 $ 1.08136
Countryside Power Income Fund COU-U $ 6.17790 $ 0.57630
Crescent Point Energy Trust CPG-U $ 17.37170 $ 1.62049
Crombie Real Estate Investment
Trust CRR-U $ 12.90960 $ 1.20425
The Data Group Income Fund DGI-U $ 7.86154 $ 0.73335
Davis & Henderson Income Fund DHF-U $ 15.06170 $ 1.40501
Daylight Resources Trust DAY-U $ 10.21650 $ 0.95303
Direct Cash Income Fund DCI-U $ 14.11720 $ 1.31690
Duke Energy Income Fund DET-U $ 9.67420 $ 0.90244
Dundee REIT D-U $ 37.15000 $ 3.46549
E.D. Smith Income Fund JAM-U $ 5.27900 $ 0.49244
Enbridge Income Fund ENF-U $ 12.99000 $ 1.21175
Energy Savings Income Fund SIF-U $ 13.30690 $ 1.24132
Enerplus Resources Fund ERF-U $ 53.40150 $ 4.98148
Enterra Energy Trust ENT-U $ 9.43680 $ 0.88030
Essential Energy Services Trust ESN-U $ 5.21170 $ 0.48617
Eveready Income Fund EIS-U $ 6.14340 $ 0.57308
Fairborne Energy Trust FEL-U $ 9.84760 $ 0.91862
First National Financial Income
Fund FN-U $ 12.74523 $ 1.18892
Focus Energy Trust FET-U $ 18.53990 $ 1.72947
Fording Canadian Coal Trust FDG-U $ 26.45200 $ 2.46754
Foremost Industries Income Fund FMO-U $ 15.10370 $ 1.40893
Fort Chicago Energy Partners L.P. FCE-U $ 11.50590 $ 1.07331
FP Newspapers Income Fund FP-U $ 10.20390 $ 0.95186
Freehold Royalty Trust FRU-U $ 14.08100 $ 1.31353
Futuremed Healthcare Income
Fund FMD-U $ 8.94770 $ 0.83467
Gateway Casinos Income Fund GCI-U $ 17.55240 $ 1.63735
Genivar Income Fund GNV-U $ 13.20600 $ 1.23190
Gienow Windows & Doors
Income Fund GIF-U $ 3.56080 $ 0.33216
GMP Capital Trust GMP-U $ 22.43190 $ 2.09253
Golf Town Income Fund GLF-U $ 12.93070 $ 1.20622
Great Lakes Carbon Income Fund GLC-U $ 11.15240 $ 1.04034
H&R REIT HR-U $ 25.07760 $ 2.33933
Harvest Energy Trust HTE-U $ 26.19150 $ 2.44324
High ArCtic Energy Services
Trust HWO-U $ 5.87680 $ 0.54821
Home Equity Income Trust HEQ-U $ 12.23770 $ 1.14158
IBI Income Fund IBG-U $ 11.89050 $ 1.10919
Innvest REIT INN-U $ 13.57200 $ 1.26604
Inter Pipeline Fund IPL-U $ 8.65930 $ 0.80777
IPC US REIT IUR-U $ 11.96911 $ 1.11652
Jazz Air Income Fund JAZ-U $ 8.58140 $ 0.80050
K-Bro Linen Income Fund KBL-U $ 10.03013 $ 0.93565
KCP Income Fund KCP-U $ 7.50370 $ 0.69997
Keg Royalties Income Fund KEG-U $ 10.99290 $ 1.02546
Keyera Facilities Income Fund KEY-U $ 16.84120 $ 1.57101
Keystone North America Inc. KNA-U $ 7.27377 $ 0.67852
Labrador Iron Ore Royalty Income
Fund LIF-U $ 27.25240 $ 2.54220
Lakeport Brewing Income Fund TFR-U $ 20.37700 $ 1.90084
Legacy Hotels REIT LGY-U $ 9.36770 $ 0.87385
Liquor Barn Income Fund LBN-U $ 7.99670 $ 0.74596
Liquor Stores Income Fund LIQ-U $ 18.63590 $ 1.73842
Livingston International Income
Fund LIV-U $ 20.05230 $ 1.87055
Macquarie Power Income Fund MPT-U $ 9.84607 $ 0.91848
Medical Facilities Corporation DR-U $ 8.87500 $ 0.82789
Medisys Health Group Income
Fund MHG-U $ 8.50495 $ 0.79337
Menu Foods Income Fund MEW-U $ 6.56130 $ 0.61206
Morguard REIT MRT-U $ 13.67360 $ 1.27552
Morneau Sobeco Income Fund MSI-U $ 10.59480 $ 0.98832
Movie Distribution Income Fund FLM-U $ 8.13210 $ 0.75859
Mullen Group Income Fund MTL-U $ 18.20690 $ 1.69840
NAL Oil and Gas Trust NAE-U $ 12.76800 $ 1.19104
New Flyer Industries Inc. NFI-U $ 9.10013 $ 0.84889
Newalta Income Fund NAL-U $ 27.06690 $ 2.52490
Newport Partners Income Fund NPF-U $ 5.56567 $ 0.51919
Noranda Income Fund NIF-U $ 10.20660 $ 0.95211
North West Company Fund NWF-U $ 16.71920 $ 1.55963
Northern Property REIT NPR-U $ 27.46120 $ 2.56168
Northland Power Income Fund NPI-U $ 13.00430 $ 1.21309
OFI Income Fund OFB-U $ 7.68103 $ 0.71651
Paramount Energy Trust PMT-U $ 13.82880 $ 1.29000
PDM Royalties Income Fund PDM-U $ 8.64540 $ 0.80647
Peak Energy Services Trust PES-U $ 5.12490 $ 0.47807
Pembina Pipelines Income Fund PIF-U $ 15.70600 $ 1.46511
Pengrowth Energy Trust PGF-U $ 19.90300 $ 1.85662
Penn West Energy Trust PWT-U $ 36.66500 $ 3.42024
Peyto Energy Trust PEY-U $ 17.30190 $ 1.61398
Phoenix Technology Income Fund PHX-U $ 7.44240 $ 0.69425
Pizza Pizza Royalty Income Fund BPF-U $ 15.25760 $ 1.42328
Pollard Banknote Income Fund PBL-U $ 8.87620 $ 0.82800
Precision Drilling Trust PD-U $ 28.66110 $ 2.67361
Premium Brands Income Fund PBI-U $ 10.10110 $ 0.94227
Primaris Retail REIT PMZ-U $ 18.45030 $ 1.72111
Primary Energy Recycling Corp. PRI-U $ 10.10470 $ 0.94260
Prime Restaurants Royalty Income
Fund EAT-U $ 6.96260 $ 0.64950
PrimeWest Energy Trust PWI-U $ 24.29120 $ 2.26597
Priszm Canadian Income Fund QSR-U $ 11.77400 $ 1.09832
Progress Energy Trust PGX-U $ 12.46810 $ 1.16307
Provident Energy Trust PVE-U $ 12.88160 $ 1.20164
Resolve Business Outsourcing
Income Fund RBO-U $ 6.91870 $ 0.64540
Retirement Residences REIT RRR-U $ 8.25000 $ 0.76959
Richards Packaging Income Fund RPI-U $ 7.94940 $ 0.74155
RioCan REIT REI-U $ 25.53700 $ 2.38218
Rogers Sugar Income Fund RSI-U $ 3.65670 $ 0.34111
Royal Host REIT RYL-U $ 6.45460 $ 0.60211
Royal LePage Franchise Services
Fund RSF-U $ 11.74640 $ 1.09575
Royal Utilities Income Fund RU-U $ 11.25010 $ 1.04945
Scott's REIT SRQ-U $ 10.19417 $ 0.95095
Second Cup Royalty Income Fund SCU-U $ 9.15280 $ 0.85381
Shiningbank Energy Trust SHN-U $ 14.64890 $ 1.36650
SIR Royalty Income Fund SRV-U $ 8.51820 $ 0.79461
Sleep Country Canada Income
Fund Z-U $ 26.16060 $ 2.44035
Sound Energy Trust SND-U $ 5.04950 $ 0.47104
Specialty Foods Group Income
Fund HAM-U $ 0.08140 $ 0.00759
Spinrite Income Fund SNF-U $ 0.94220 $ 0.08789
Sterling Shoes Income Fund SSI-U $ 14.60630 $ 1.36253
Strongco Income Fund SQP-U $ 11.70590 $ 1.09197
Student Transportation of America
Ltd. STB-U $ 11.15655 $ 1.04072
Sunrise Senior Living Real Estate
Investment Trust SZR-U $ 9.99780 $ 0.93263
Superior Plus Income Fund SPF-U $ 10.65190 $ 0.99365
Supremex Income Fund SXP-U $ 8.07350 $ 0.75313
Taylor Gas Liquids L.P. TAY-U $ 8.71290 $ 0.81277
Teranet Income Fund TF-U $ 8.74480 $ 0.81575
TerraVest Income Fund TI-U $ 6.00400 $ 0.56007
The Brick Group Income Fund BRK-U $ 8.05150 $ 0.75107
TimberWest Timber Trust TWF-U $ 14.89284 $ 1.38926
Total Energy Services Trust TOT-U $ 12.48560 $ 1.16470
TransAlta Power L.P. TPW-U $ 7.18400 $ 0.67015
TransForce Income Fund TIF-U $ 12.86770 $ 1.20035
Tree Island Wire Income Fund TIL-U $ 6.36790 $ 0.59402
Trilogy Energy Trust TET-U $ 11.21270 $ 1.04596
Trimac Income Fund TMA-U $ 8.30560 $ 0.77478
Trinidad Energy Services Income
Trust TDG-U $ 14.06240 $ 1.31179
UE Waterheater Income Fund UWH-U $ 13.59155 $ 1.26787
Vermilion Energy Trust VET-U $ 34.56320 $ 3.22418
Versacold Income Fund ICE-U $ 8.62103 $ 0.80420
Vicwest Income Fund VIC-U $ 9.69700 $ 0.90457
Voxcom Income Fund VOX-U $ 9.00300 $ 0.83983
Wajax Income Fund WJX-U $ 31.82790 $ 2.96902
Wellco Energy Services Trust WLL-U $ 6.68300 $ 0.62341
Westfield REIT WFD-U $ 15.97900 $ 1.49058
Westshore Terminals Income
Fund WTE-U $ 11.22260 $ 1.04688
Whiterock REIT WRK-U $ 12.56860 $ 1.17244
Yellow Pages Income Fund YLO-U $ 13.19507 $ 1.23088
Zargon Energy Trust ZAR-U $ 24.99950 $ 2.33204


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 www.citadelfunds.com

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
    1-877-261-9674
    Website: www.citadelfunds.com