Sentry Select Capital Corp.

Sentry Select Capital Corp.
Global DiSCS Trust 2004-1

Global DiSCS Trust 2004-1

September 12, 2008 10:31 ET

Global DiSCS Trust 2004-1 (TSX:DST.UN) Announces Credit Events

TORONTO, ONTARIO--(Marketwire - Sept. 12, 2008) - On September 12, 2008, the Calculation Agent for Global DiSCS Trust 2004-1 (the "Trust") (TSX:DST.UN) notified the Trust of a Credit Event in respect of Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, the "Agencies"), resulting from the Federal Housing Finance Agency(FHFA), placing the Agencies under conservatorship. The exposure of the Trust's unitholders to each Agency is 1.50% of the Reference Portfolio.

The Calculation Agent will carry out the valuation process in accordance with the terms of the Trust's Declaration of Trust and this process should be completed by mid-December 2008. Global DiSCS Trust 2004-1 units benefit from the protection of a synthetic first loss tranche equal to 3.606% of the Reference Portfolio. The initial 4.10% first-loss tranche was reduced as a result of the 2006 Delphi Corporation and the 2008 Quebecor World Inc. Credit Events.

Unitholders' entitlement to receive C$25 per Trust unit on December 20, 2009 and quarterly distributions of $0.325 per unit will not be affected by these Credit Events. However, if future Cumulative Net Loss Amount resulting from credit events exceeds the remaining first-loss tranche, the Trust's unitholders will not receive the original subscription price of $25 per unit upon the maturity date.

The debt securities of both Agencies are currently trading at approximately 95% to 98% of their face value.

Trading information

The units of the Trust are listed for trading on the Toronto Stock Exchange under the symbol DST.UN. The latest published net asset value of the Trust, as of September 10, 2008, was $19.31 per unit.

Sentry Select Capital Corp.

Sentry Select Capital Corp. is a Canadian wealth management company that manages over $6 billion in gross assets as of June 30, 2008. The company offers a diverse range of investment products including closed-end trusts, mutual funds, principal-protected notes and flow-through limited partnerships, covering a variety of domestic and global mandates.

Capitalized used herein but not defined have the meaning ascribed to them in the Trust's final prospectus.

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 Sentry Select Capital Corp. ("Sentry Select"). The forward-looking statements are not historical facts but reflect Sentry Select'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. Although Sentry Select believes 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. Sentry Select undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

Sentry Select Capital Corp.
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

  • Sentry Select Capital Corp.
    Investor Services
    (broker/investor inquiries)
    (416) 364-1197 (FAX)
    Sentry Select Capital Corp.
    Kinga Lam
    (media inquiries)
    (416) 364-1197 (FAX)