Morneau Sobeco Income Fund
TSX : MSI.UN

Morneau Sobeco Income Fund

March 24, 2009 10:57 ET

Morneau Sobeco Income Fund Completes Previously Announced Bought Deal Offering

TORONTO, ONTARIO--(Marketwire - March 24, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES

Morneau Sobeco Income Fund (TSX:MSI.UN) (the "Fund") is pleased to announce that it has completed its previously announced bought deal offering of units (the "Offering"). Pursuant to the Offering, the Fund issued 6,666,700 units of the Fund at a price of $8.25 per unit, for aggregate gross proceeds of $55,000,275 and net proceeds, after payment of underwriting fees and expenses, of $51,500,000.

The Fund has elected to use the entire net proceeds from the Offering to prepay a portion of a $75 million vendor take-back note (the "Note") due July 2, 2009 related to the purchase by the Fund of Shepell-fgi in June 2008. The Fund has agreed to pay Clairvest Group Inc. (the holder of the Note) and other vendors of Shepell-fgi an additional $23,230,000 on June 30, 2009, which shall constitute full satisfaction of the Fund's obligation under the Note.

The syndicate of underwriters was led by National Bank Financial Inc., BMO Nesbitt Burns Inc. and TD Securities Inc. and including CIBC World Markets Inc., GMP Securities L.P. and Scotia Capital Inc. (the "Underwriters"). The Fund has granted the Underwriters an over-allotment option, exercisable at any time prior to April 23, 2009, to acquire up to an additional 666,670 units of the Fund at the issue price of $8.25.

The units will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States to any person absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the units in the United States.

About Morneau Sobeco

Morneau Sobeco is one of the largest Canadian human resources consulting and outsourcing firms focused on pensions, benefits, and workplace health and productivity solutions, including employee assistance programs. The Fund delivers solutions to assist employers to reduce costs, increase productivity and improve their competitive positions by supporting their employees' financial security, health and wellbeing. With approximately 2,200 employees in offices across North America, the Fund offers its servcices to over 6,000 organizations in Canada, the United States, and around the globe. Units of Morneau Sobeco Income Fund trade on the Toronto Stock Exchange under the symbol MSI.UN. Further information about Morneau Sobeco can be obtained on the firm's web site at www.morneausobeco.com.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws, such as statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Use of words such as "may", "will", "expect", "believe", or other words of similar effect may indicate a "forward-looking" statement. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those described in Morneau Sobeco's publicly filed documents (available on SEDAR at www.sedar.com) and in the firm's MD&A under the heading "Risks and Uncertainties". Those risks and uncertainties include income tax matters, ability to maintain profitability and manage growth, reliance on information systems and technology, reputational risk, dependence on key clients, reliance on key professionals and general economic conditions. Many of these risks and uncertainties can affect the firm's actual results and could cause Morneau Sobeco's actual results to differ materially from those expressed or implied in any forward-looking statement made by Morneau Sobeco or on the firm's behalf. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. All forward-looking statements in this news release are qualified by these cautionary statements. These statements are made as of the date of this news release and, except as required by applicable law, Morneau Sobeco undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Additionally, Morneau Sobeco undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Fund, its financial or operating results or its securities.

Contact Information

  • Morneau Sobeco Income Fund
    William Morneau
    Chairman & Chief Executive Officer
    (416) 445-2700
    or
    Morneau Sobeco Income Fund
    Nancy Lala
    Chief Financial Officer
    (416) 445-2700
    www.morneausobeco.com