Citadel Premium Income Fund

Citadel Premium Income Fund

June 20, 2008 18:09 ET

Citadel Premium Income Fund Notice of Rights Offering

CALGARY, ALBERTA--(Marketwire - June 20, 2008) - Citadel Premium Income Fund (TSX:CPF.UN) (the "Trust") announces that it is issuing Rights to subscribe for trust units to holders of its trust units of record at the close of business on June 30, 2008. Each holder of trust units is entitled to one Right for each trust unit held on the record date. Three Rights will entitle the holder to purchase one trust unit of the Trust at a price of $9.50 per trust unit until 4:00 p.m. local time at the place of exercise on July 28, 2008. The subscription price of $9.50 per trust unit represents a discount of 15.7% to the Trust's net asset value of $11.27 per trust unit on June 19, 2008.

The reason for the offering is to provide the Trust with additional capital to reduce the indebtedness to be incurred under its credit facility which will be used to finance the June 2008 annual redemption, while maintaining its current portfolio of attractive investments.

If all of the Rights are exercised, the Trust will issue 10,559,923 trust units and receive net proceeds of approximately $98.5 million. The Toronto Stock Exchange has approved the listing of the Rights which are expected to commence trading on June 26, 2008 under the symbol of CPF.RT.A.

TD Securities Inc. will act as dealer manager to form a facilitating dealer group to solicit subscriptions for the clients.

Contact Information

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