Stephenson's Rental Services Income Fund
TSX : RNT.UN

Stephenson's Rental Services Income Fund

July 28, 2005 09:53 ET

Stephenson's Rental Services Income Fund Completes Initial Public Offering

MISSISSAUGA, ONTARIO--(CCNMatthews - July 28, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Stephenson's Rental Services Income Fund (the "Fund") (TSX:RNT.UN) announced that it has completed its initial public offering of 7,010,908 Class A trust units (the "Units") at a price of $10 per Unit for total gross proceeds of $70,109,080. The offering was underwritten by a syndicate led by Scotia Capital Inc. and National Bank Financial Inc. and included CIBC World Markets Inc., TD Securities Inc. and First Associates Investments Inc. The Fund also granted to the underwriters an over-allotment option to acquire within 30 days following closing an additional 350,546 Units on the same terms and conditions.

The Fund will use the proceeds of the offering to indirectly acquire and hold an initial 76.2% interest (and up to an 80% interest if the over-allotment option is exercised in full) in the business currently conducted through SRA Holdings Inc. and its affiliates ("Stephenson's"), with the balance to be retained by current shareholders and management of Stephenson's.

The Fund expects to make its first cash distribution to holders of Units on or about September 15, 2005 in respect of the period from the closing of the offering to August 31, 2005, which is estimated to be $0.1035 per Unit. Subsequent regular distributions in the estimated amount of $0.0917 per Unit are anticipated to be paid each month thereafter commencing on or about October 15, 2005.

The Units have commenced trading on the Toronto Stock Exchange under the symbol RNT.UN.

About Stephenson's:

Stephenson's is the leading general tool and equipment rental company in Toronto and the surrounding areas. Through its 21 branches, Stephenson's provides rental equipment and sells related merchandise and new equipment to a diverse base of over 30,000 customers across new construction and renovation sectors. Stephenson's rents equipment across five categories: (i) general tools; (ii) light construction equipment; (iii) heavy construction equipment; (iv) heating equipment; and (v) scaffolding.

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 in this press release may constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Fund to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, such statements use such words as "may," "will," "expect," "anticipate," "project," "believe," "plan" and other similar terminology. The risks and uncertainties are detailed from time to time in reports filed by the Fund with the securities regulatory authorities in all of the provinces and territories of Canada to which recipients of this press release are referred for additional information concerning the Fund, its prospects and the risks and uncertainties relating to the Fund and its prospects. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of the Fund to be materially different from those contained in forward-looking statements. The forward-looking information contained in this press release is current only as of the date of this press release. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.

Contact Information

  • Stephenson's Rental Services Income Fund
    William D. Swisher
    Chief Executive Officer
    (905) 507-3650