Sentry Select Capital Corp.

Sentry Select Capital Corp.
Canadian Income Management Trust

Canadian Income Management Trust

March 30, 2006 10:45 ET

Sentry Select Capital Corp. Completes Second Closing for Canadian Income Management Inc. and Canadian Income Management Trust; Raises Additional $4.37 Million

TORONTO, ONTARIO--(CCNMatthews - March 30, 2006) -

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

Sentry Select Capital Corp. is pleased to announce that Canadian Income Management Inc. (the "Corporation") and Canadian Income Management Trust (the "Trust") completed a second closing on March 30, 2006 and issued an additional 33,636 bundled units for gross proceeds of $4,372,680.

Gross proceeds

Together with the first closing on February 21, 2006, the Corporation and Trust have issued 341,336 bundled units, at a price of $130 per bundled unit, for total gross proceeds of approximately $44.37 million. Each bundled unit consists of a $100 principal amount of 7% unsecured subordinated debentures of the Corporation due August 31, 2012; 15 trust units of the Trust; and 15 trust unit purchase warrants of the Trust. Each warrant entitles the holder to acquire one trust unit at a price of $2.60, expiring on February 28, 2012. After closing, each of the debentures, trust units and warrants trades separately.

Over-allotment option

Canaccord Adams, the exclusive agent for the offering, has been granted an option to purchase up to 15% of the aggregate number of bundled units issued pursuant to the initial closing and any additional closings, at a price of $130 per bundled unit, for a period of 30 days following the closing, solely to cover over-allotments of units.

Trading information

The debentures, trust units and warrants trade on the Toronto Stock Exchange under the symbols CAI.DB, CNM.UN and CNM.WT respectively.

Investment objectives

The investment objectives of the Corporation include (i) to provide debentureholders with semi-annual interest payments at a rate of 7% per annum, and (ii) to preserve and potentially enhance the value of the portfolio in order to repay the debentures at maturity.

The investment objectives of the Trust are (i) to provide unitholders with semi-annual cash distributions, initially expected to be $0.155 per trust unit per annum (7.75% of the original issue price of the trust security), and (ii) to preserve and potentially enhance the value of the portfolio in order to return to unitholders at least $2.00 per trust unit upon the termination of the trust in 2012.

Investment objectives

To meet the investment objectives, the net proceeds of the offering will be invested in Canadian Income Management LP, which will in turn invest the net proceeds in a diversified portfolio of income trusts, royalty trusts and REITs to be actively managed by Sentry Select Capital Corp., the investment manager.

The agent

Canaccord Adams acted as the exclusive agent with respect to the offering.

The investment manager

Sentry Select Capital Corp. provides investment, administrative and marketing services to 23 exchange-listed closed-end funds, 17 of which have exposure to the income trust sector, 16 mutual funds, 11 principal-protected notes and three flow-through limited partnerships. Sentry Select is one of the largest Canadian investment managers in the income trust sector. As of February 28, 2006, the firm had approximately $9.0 billion in gross assets under management.



The Exchange Tower
130 King Street West
Suite 2850, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone: (416) 861-8729
Fax: (416) 364-5615



Contact Information

  • Sentry Select Capital Corp.
    Investor Services
    (broker/investor inquiries)
    1-888-246-6656
    or
    Sentry Select Capital Corp.
    Brian McOstrich
    (media inquiries)
    1-888-246-6656
    (416) 364-1197 (FAX)
    info@sentryselect.com
    www.sentryselect.com