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

Prime Rate Plus Corp.

October 19, 2005 09:00 ET

Prime Rate Plus Corp. Regular Monthly Dividend Declaration

TORONTO, ONTARIO--(CCNMatthews - Oct. 19, 2005) - Prime Rate Plus Corp. ("Prime Plus") (TSX:PPL)(TSX:PPL.PR.A) declares its regular monthly distribution of $0.08125 (6.5% annualized) for each Class A share which reflects the distribution policy of prime rate in Canada (4.50% as at Oct 14th) plus 2% annually. Prime Plus also declares its regular monthly distribution of $0.04375 (5.25% annualized) for each Preferred share which reflects the distribution policy of prime rate plus 0.75% annually. Distributions are payable November 10, 2005 to shareholders on record as of October 31, 2005.

Since inception Class A shareholders have received a total of $0.24 per share and Preferred shareholders have received a total of $0.15 per share inclusive of this distribution, for a combined total of $0.39.

The fund's investment objectives are:

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.

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.

Prime Plus invests in a portfolio of six publicly traded Canadian Banks as follows: Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Bank of Nova Scotia, Toronto-Dominion Bank. Shares held within the portfolio are expected to range between 5-20% in weight but may vary at any time. To generate additional returns above the dividend income earned on the portfolio, Prime Plus will engage in a selective covered call writing program.



Distribution Details:

Class A Share (PPL): $0.08125
Preferred Share (PPL.PR.A) $0.04375
Ex-Dividend Date: October 27, 2005
Record Date: October 31, 2005
Payable Date: November 10, 2005



Contact Information