Citadel Premium Income Fund

Citadel Premium Income Fund

July 17, 2007 13:32 ET

Citadel Premium Income Fund Announces Redemption Amount

CALGARY, ALBERTA--(Marketwire - July 17, 2007) - Citadel Premium Income Fund Trust (TSX:CPF.UN) announces the redemption price of $11.36 per trust unit in respect of the most recent redemption date of June 28, 2007. This amount will be paid to redeeming unitholders on July 23, 2007, the 15th business day in July.

Pursuant the Fund's Declaration of Trust and as set out in the Final Prospectus of Citadel Premium Income Fund dated July 13, 2006, trust units of the Fund may be surrendered for redemption commencing in June 2007, subject to certain conditions, for redemption on the second last Business Day of June (the "Redemption Date"). Unitholders whose trust units are redeemed will receive a redemption price equal to the Redemption Value calculated as of the Redemption Date; where "Redemption Value" means an amount equal to 100% of the net asset value per trust unit calculated on the Redemption Date, less the following costs incurred in, and as a result of, funding the redemption, such total costs to be allocated pro rata among the trust units being redeemed:

(1) all commissions and sales charges incurred in funding the redemption;

(2) an amount equal to the highest marginal tax rate in Alberta multiplied by the taxable portion of capital gains realized by the Fund in funding the redemption; (this amount was determined to be not applicable for 2007 as outlined in the press release issued on April 24, 2007)

(3) an amount equal to $0.20, to offset increased general and administrative expenses per trust following the redemption; and

(4) the difference between the proceeds realized on the sale of the Fund's portfolio securities sold to fund the Redemption Value and the value the same portfolio securities are valued at for the purpose of calculating net asset value on the Redemption Date.

For the purposes of calculating the net asset value, the value of the portfolio securities comprising the portfolio was equal to the weighted average trading price of such securities over the last three business days of the month of June.

For the redemption date of June 28, 2007, approximately 36% of the outstanding trust units were tendered for redemption representing 21,559,615 units. The combined costs set out above totaled $0.21 per unit.

Contact Information

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