Somerset Entertainment Income Fund

Somerset Entertainment Income Fund

March 18, 2005 09:42 ET

Somerset Entertainment Income Fund Completes Initial Public Offering


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SOMERSET ENTERTAINMENT INCOME FUND

TSX SYMBOL: SOM.UN

MARCH 18, 2005 - 09:42 ET

Somerset Entertainment Income Fund Completes Initial
Public Offering

TORONTO, ONTARIO--(CCNMatthews - March 18, 2005) - NOT FOR DISTRIBUTION
TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Somerset Entertainment Income Fund (TSX:SOM.UN) (the "Fund") announced
today that it has completed its initial public offering of 9,600,000
trust units at $10 per unit for gross proceeds of $96,000,000. The Fund
will use the proceeds of the offering indirectly to acquire and hold an
initial 75% interest (and up to an 80% interest if the underwriters
exercise their over-allotment option) in Somerset Entertainment Holdings
Inc. ("Somerset"), with the balance to be retained by certain current
shareholders of Somerset.

The underwriting syndicate for the offering is co-led by BMO Nesbitt
Burns Inc. and RBC Dominion Securities Inc., and includes CIBC World
Markets Inc., TD Securities Inc., First Associates Investments Inc. and
Raymond James Ltd.

The Fund's units have commenced trading on the Toronto Stock Exchange
under the symbol SOM.UN.

The initial monthly cash distribution of the Fund for the period from
closing to and including April 30, 2005 is expected to be paid on or
about May 13, 2005 and is estimated to be $0.1149 per unit. Subsequent
regular distributions in the estimated amount of $0.0792 per unit are
anticipated to be paid each month thereafter commencing June 15, 2005.

Somerset is the leading North American producer and distributor of
specialty music sold through non-traditional retailers using interactive
displays.

The securities offered have not been, and will not be, registered under
the United States Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or any
applicable exemption from the registration requirement of such Act. This
press release shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any sale of these securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful.

Certain statements made in this news release are forward-looking and
subject to various risks and uncertainties. Such forward-looking
statements are based on management's beliefs and assumptions regarding
the information currently available. Actual results could differ
materially from those expressed in the forward-looking statements.
Factors that could cause results to vary include, among other things,
those expressed in the prospectus filed with Canadian securities
regulatory authorities. All data presented in this news release should
be read in conjunction with the prospectus.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Somerset Entertainment
    Andy Burgess
    President
    (416) 510-2800