Prime Dividend Corp.
TSX : FTN
TSX : FTN.PR.A
TSX : DFN
TSX : DFN.PR.A
TSX : FFN
TSX : FFN.PR.A
TSX : FTU
TSX : FTU.PR.A
TSX : LFE
TSX : LFE.PR.A
TSX : PPL
TSX : PPL.PR.A

Prime Dividend Corp.

October 03, 2005 13:37 ET

Prime Dividend Corp.: Initial Public Offering

TORONTO, ONTARIO--(CCNMatthews - Oct. 3, 2005) - Prime Dividend Corp. ("PDV Corp.") is pleased to announce the filing of a preliminary prospectus for a proposed offering, which offers Class A Shares and Preferred Shares.

PDV Corp.'s Floating Rate Class A Shares offer regular monthly cash distributions initially targeted to be 6.5% per annum. The dividend will float at the prime rate in Canada plus 2.00% with a minimum annual targeted rate of 5% and a maximum annual targeted rate of 10%, with the objective of repaying the original issue price upon termination. The Class A shares will also provide holders with any capital appreciation or dividend growth achieved in the investment portfolio.

PDV Corp.'s Floating Rate Preferred Shares offer, cumulative preferential monthly cash dividends initially at a rate of 5.25% per annum. The dividend will float at the prime rate in Canada plus 0.75% with a minimum annual rate of 5.00%, and a maximum annual rate of 7%, with the objective of repaying the original issue price upon termination.

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



Banks Investment Management
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Bank of Montreal AGF Management
The Bank of Nova Scotia CI Fund Management
CIBC IGM Financial Inc.
National Bank of Canada
Royal Bank of Canada
Toronto-Dominion Bank

Life Insurance Utilities & Other
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Great-West Lifeco BCE Inc.
Manulife Financial TransAlta Corp
Sun Life Financial TransCanada Corp
Power Financial Corp.
TSX Group Inc.

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


To generate additional returns above the dividend income earned on the portfolio, PDV Corp. will engage in a limited covered call writing program.

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.

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