Prime Dividend Corp.
TSX : PDV
TSX : PDV.PR.A

Prime Dividend Corp.

November 16, 2005 10:40 ET

Prime Dividend Corp. Completes Initial Public Offering of $55,000,000

TORONTO, ONTARIO--(CCNMatthews - Nov. 16, 2005) - Prime Dividend Corp. ("Prime Dividend") (TSX:PDV)(TSX:PDV.PR.A) has completed its initial public offering of 2,200,000 Preferred Shares and 2,200,000 Class A Shares of the Corporation for aggregate gross proceeds of $55,000,000. The shares have begun trading on the Toronto Stock Exchange under the symbols PDV (Class A shares) and PDV.PR.A (Preferred shares).

Prime Dividend's Floating Rate Preferred Shares offer, cumulative preferential monthly cash dividends initially at a rate of 5.50% per annum. The dividend will float at the prime rate in Canada plus 0.75%, with the objective of repaying the original issue price upon termination on December 1, 2012. The Preferred shares have received a provisional rating of PFD-2 from DBRS.

Prime Dividend's Floating Rate Class A Shares offer regular monthly cash distributions initially targeted to be 6.75% per annum. The dividend will float at the prime rate in Canada plus 2.00%, with the objective of repaying the original issue price upon termination on December 1, 2012. The Class A shares will also provide holders with any capital appreciation or dividend growth achieved in the investment portfolio.

The net proceeds from the proposed offering will be used by Prime Dividend to invest in a portfolio of high yielding Canadian Companies as follows:




Investment Utilities &
Banks Management Life Insurance Other

Bank of AGF Management Great-West BCE Inc.
Montreal Ltd. Lifeco Inc.

The Bank of CI Fund Manulife TransAlta
Nova Scotia Management Inc. Financial Corp. Corp

CIBC IGM Financial Sun Life TransCanada
Inc. Financial Inc. Corp

National Bank Power
of Canada Financial
Corp.

Royal Bank TSX
of Canada Group Inc.

Toronto-Dominion
Bank

Shares held within the Portfolio will generally represent no less
than 4% and no more than 8% of the net asset value.


To supplement the dividends received on the portfolio and reduce risk, Prime Dividend will from time to time write covered call options.

CIBC and RBC Capital Markets are co-lead agents for the proposed offering. The other members of the syndicate are TD Securities Inc., BMO Nesbitt Burns, National Bank Financial, Desjardins Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Dundee Securities Corporation, Raymond James Ltd, Bieber Securities Inc., Blackmont Capital Inc., BLC Securities Inc., and Wellington West Capital Inc.

Please visit the Prime Dividend Corp. website at www.primedividend.com.

Contact Information