Prime Rate Plus Corp.
TSX : PPL.PR.A
TSX : PPL

Prime Rate Plus Corp.

April 23, 2008 11:59 ET

Prime Rate Plus Corp.: Dividend Rate Change

TORONTO, ONTARIO--(Marketwire - April 23, 2008) - As a result of the Bank of Canada's decision yesterday to decrease the bank rate in Canada by 0.50%, the Prime Rate has also decreased by 0.50% to 4.75%. As a result, the May dividends payable to both Preferred Shares and Class A shares of Prime Rate Plus are each set to decrease by 0.50%. This would result in the May Preferred share dividend once declared being set at an annualized rate of 5.50% (Prime Rate plus 0.75%) and the Class A share dividend being set at an annualized rate of 6.75% (Prime Rate plus 2.0%).

Prime Rate Plus Corp. invests in a portfolio of six publicly traded Canadian Banks as follows:



Bank of Montreal National Bank of Canada Bank of Nova Scotia

Canadian Imperial Bank
of Commerce Royal Bank of Canada Toronto-Dominion Bank


Shares held within the Portfolio are expected to range between 5-20% in weight but may vary from time to time.

The fund's investment objectives are:

Floating Rate Preferred Shares:

(i) to provide holders of the Preferred Shares with cumulative preferential floating rate monthly cash dividends at a rate per annum equal to the Prime Rate in Canada plus 0.75% (minimum 5%, maximum 7%) based on original issue price of $10.00 per share.

(ii) on or about December 1, 2012 (termination date), to pay the holders of the Preferred Shares the original issue price of those shares.

Floating Rate Class A Shares:

(i) to provide holders of the Class A Shares with regular floating rate monthly cash distributions targeted to be at a rate per annum equal to the Prime Rate in Canada plus 2.0% (minimum 5%, maximum 10%) based on original issue price of $15.00 per share.

(ii) on or about December 1, 2012 (termination date), to pay the holders of Class A Shares at least the original issue price of those shares.

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