Morneau Sobeco Income Fund

Morneau Sobeco Income Fund
Morneau Shepell Inc.

Morneau Shepell Inc.

January 01, 2011 09:00 ET

Morneau Shepell Inc. Announces the Completion of the Conversion of Morneau Sobeco Income Fund to a Corporation and Execution of Amended and Restated Credit Agreement

TORONTO, ONTARIO--(Marketwire - Jan. 1, 2011) -


Morneau Shepell Inc. ("Morneau Shepell") (TSX:MSI) announced today that it has received the requisite regulatory approvals and third-party consents required to complete the reorganization (the "Reorganization") of Morneau Sobeco Income Fund (the "Fund") (TSX:MSI.UN) from an income trust structure into a public corporation named Morneau Shepell Inc. The Reorganization was approved by the Ontario Superior Court of Justice on December 2, 2010.

Morneau Shepell now directly and indirectly operates the businesses which were previously operated by the Fund and its subsidiaries. The management and trustees of the Fund are now the management and directors of Morneau Shepell. 

Prior to the Reorganization, holders of class B limited partnership units (the "LP Units") of Morneau Sobeco Group Limited Partnership, a subsidiary of the Fund, received common shares in the capital of Morneau Shepell (the "Shares") in exchange for their LP Units, on a one-for-one basis. Pursuant to the Reorganization, holders of Fund units (the "Units") received Shares in exchange for their Units, on a one-for-one basis. Morneau Shepell now has 47,910,409 Shares outstanding. The Shares are listed on the Toronto Stock Exchange under the symbol "MSI".

Morneau Shepell also announced that it has also entered into an amended and restated credit agreement effective January 1, 2011 for a term of four years. The credit facility provides for a term loan of $130 million and a revolving facility of $75 million. The terms of the amended and restated credit agreement are similar to those contained in the agreement previously entered into by a subsidiary of the Fund with the same lending syndicate. However the Debt to EBITDA covenant in the new agreement is 3.25 to 1 for 2011 and 3.0 to 1 thereafter. 

About Morneau Shepell Inc.

Morneau Shepell Inc. is Canada's largest human resource consulting and outsourcing firm focused on pensions, benefits, employee assistance program (EAP) and workplace health management and productivity solutions. We offer business solutions that help our clients reduce costs, increase employee productivity and improve their competitive positions by supporting their employees' financial security, health and well-being.

Contact Information

  • Morneau Shepell Inc.
    Investor Relations
    (416) 445-2700