Morneau Sobeco Income Fund

Morneau Sobeco Income Fund

March 04, 2009 16:30 ET

Morneau Sobeco Income Fund Announces $55 Million Bought Deal Equity Offering

TORONTO, ONTARIO--(Marketwire - March 5, 2009) -


Morneau Sobeco Income Fund (TSX:MSI.UN) ("Morneau Sobeco" or the "Fund") announced today that it has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. for a public offering, on a bought deal basis, of 6,666,700 Trust Units at a price of $8.25 per Trust Unit for gross proceeds of $55,000,275 million (the "Offering"). The Fund has also granted to the underwriters an over-allotment option, exercisable for a period of 30 days from the date of closing of the Offering, to purchase up to an additional 666,670 Trust Units at the Offering price. The Offering is expected to close on or about March 24, 2009 and is subject to regulatory and stock exchange approvals. The Trust Units will be offered by way of short form prospectus in each of the provinces and territories of Canada.

The net proceeds from the Offering will be used to partially fund repayment of $75 million in non-interest bearing vendor take-back notes in connection with the acquisition of Shepell.fgi due July 2, 2009 and general corporate purposes.

The offering of Trust Units is being made in all provinces and territories of Canada by means of a short-form prospectus. This press release is not an offering of securities for sales in the United States. The Trust Units have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.

Forward-Looking Statements

Certain information regarding Morneau Sobeco contained herein may constitute forward-looking statements. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Morneau Sobeco believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Morneau Sobeco's forward-looking statements are expressly qualified in their entirety by this cautionary statement.

About Morneau Sobeco

Morneau Sobeco Income Fund is the largest Canadian-owned firm providing human resource consulting and outsourcing services. Through Morneau Sobeco and Shepell-fgi, the firm delivers solutions to assist employers in managing the financial security, health and productivity of their employees. With over 2,300 employees in offices across North America, Morneau Sobeco Income Fund offers its services to organizations that are situated in Canada, in the United States and around the globe.

Contact Information

  • Morneau Sobeco Income Fund
    William Morneau
    Chairman & CEO
    (416) 445-2700
    Morneau Sobeco Income Fund
    Nancy Lala
    Chief Financial Officer
    (416) 445-2700