Sentry Select Capital Corp.

Sentry Select Capital Corp.

November 09, 2006 13:01 ET

Sentry Select Capital Corp. Files Preliminary Prospectus for Sentry Select 40 Split Income Trust

TORONTO, ONTARIO--(CCNMatthews - Nov. 9, 2006) - Sentry Select Capital Corp. is pleased to announce that a preliminary prospectus for Sentry Select 40 Split Income Trust (the "Trust") has been filed with the securities regulatory authorities in each of the provinces and territories of Canada. The Trust is an investment trust that will issue Preferred Securities and Capital Units.

Cash option

The Preferred Securities and Capital Units are being offered separately, but will be issued only on the basis that an equal number of Preferred Securities and Capital Units will be outstanding at the closing of the Offering.

The Offering price is $10.00 per Preferred Security and $10.00 per Capital Unit.

Exchange option

Prospective purchasers may also acquire Combined Units by an exchange of any of the Eligible Securities as described in the preliminary prospectus, at the applicable Exchange Ratio described below. Prospective purchasers intending to utilize the Exchange Option have to ensure an Exchange Option Election is received by the Exchange Agent through CDS prior to 5:00 p.m. (Toronto time) on November 24, 2006. Such book-entry deposits have to be made by a CDS participant, who may have an earlier deadline.

Investment objectives

The Trust's investment objectives are:

a) with respect to the Preferred Securities, (i) to pay fixed quarterly interest payments equal to 5.25% per annum on the principal amount of the Preferred Securities and (ii) to return to securityholders on November 30, 2008 the original subscription price of the Preferred Securities (in cash or, at the election of the holder, in Capital Units); and

b) with respect to the Capital Units, (i) to pay monthly distributions, initially expected to be equal to 10% per annum, and (ii) to preserve and enhance net asset value.

Exchange Ratio

The number of Combined Units issuable for the Eligible Securities of an Issuer will be determined by dividing the weighted average trading price of the Eligible Securities of such Issuer on the TSX during the three consecutive trading days ended on November 24, 2006 as adjusted to reflect distributions declared by an Issuer that will not be received by the Trust; by $20.00. The Exchange Ratios will be rounded down to four decimal places.



Eligible Securities

RESOURCE INDUSTRIAL
Fording Canadian Coal Trust BFI Canada Income Fund
Noranda Income Fund CanWest MediaWorks Income Fund
Canexus Income Fund
POWER Precision Drilling Trust
Algonquin Power Income Fund Superior Plus Income Fund
Atlantic Power Corporation Westshore Terminals Income Fund
Boralex Power Income Fund Yellow Pages Income Fund
Calpine Power Income Fund
Macquarie Power & Infrastructure
Income Fund REITS
Primary Energy Recycling Allied Properties Real Estate
Corporation Investment Trust
TransAlta Power, L.P. Calloway Real Estate Investment Trust
Canadian Hotel Income Properties Real
Estate Investment Trust
UTILITIES & INFRASTRUCTURE Chartwell Seniors Housing Real
Bell Aliant Regional Estate Investment Trust
Communications Income Fund Dundee Real Estate Investment Trust
Fort Chicago Energy Partners L.P. H&R Real Estate Investment Trust
Inter Pipeline Fund RioCan Real Estate Investment Trust
Keyera Facilities Income Fund
Pembina Pipeline Income Fund OIL & GAS
Royal Utilities Income Fund ARC Energy Trust
Baytex Energy Trust
CONSUMER Bonavista Energy Trust
CI Financial Income Fund Crescent Point Energy Trust
CML Healthcare Income Fund NAL Oil & Gas Trust
Teranet Income Fund Pengrowth Energy Trust
Shiningbank Energy Income Fund
Trilogy Energy Trust


Sentry Select Capital Corp.

Sentry Select Capital Corp. is a wealth management company providing investment, administrative and marketing services to 33 exchange-listed closed-end funds and corporations, including preferred securities and debentures, 17 principal-protected notes, 16 mutual funds and four flow-through limited partnerships. Sentry Select is one of the largest Canadian investment managers in the income trust sector. As of September 30, 2006, the firm had approximately $8.5 billion in gross assets under management.

Agents

The syndicate of agents co-led by CIBC World Markets Inc. and RBC Capital Markets, includes BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Capital Corporation, Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Berkshire Securities Inc., Blackmont Capital Inc., Wellington West Capital Inc., Desjardins Securities Inc., IPC Securities Corporation, Jory Capital Inc. and Research Capital Corporation.

This news release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, the future performance of the Trust. When used in this news release, the word "expects" and the use of the future tense generally identify forward-looking statements. These statements reflect Sentry Select's current expectations, but are subject to a number of risks and uncertainties. Due to the many risks and uncertainties, Sentry Select cannot assure that the forward-looking statements contained in this news release will be realized.

Contact Information

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