Sentry Select Capital Corp. Proposes Merger of Sentry Select FIDAC U.S. Mortgage Trust (SSF.UN) With Sentry Select MBS Adjustabl
28 Janvier 2008 - 9:41PM
Marketwired
TORONTO, ONTARIO announces that it is proposing a merger of
Sentry Select FIDAC U.S. Mortgage Trust (TSX: SSF.UN) (the
"Terminating Fund") with Sentry Select MBS Adjustable Rate Income
Fund II (TSX: MGS.UN) ("ARIF II") (the "Merger").
If approved, the Terminating Fund will transfer all of its
assets to ARIF II in exchange for units of ARIF II and the
assumption by ARIF II of all the liabilities of the Terminating
Fund. Each unitholder of the Terminating Fund will receive units of
ARIF II having the same aggregate net asset value as their units of
the Terminating Fund as of the close of business on the effective
date of the Merger, expected to be March 7, 2008.
The Merger
The Manager believes that the Merger will result in significant
benefits to unitholders for the following reasons:
- Unitholders of the Terminating Fund will see a reduction in
their management fee reflecting the lower ARIF II management
fee;
- The larger, combined ARIF II will have the advantage of
increased economies of scale and lower proportionate fund operating
expenses;
- The Merger will eliminate the administrative and regulatory
costs of operating separate investment funds;
- The Merger will provide greater liquidity on the Toronto Stock
Exchange ("TSX") resulting from a greater market
capitalization;
- Unitholders of the Terminating Fund will receive distributions
more frequently since ARIF II pays distributions monthly while the
Terminating Fund pays distributions quarterly; and
- The Merger will provide greater stability and predictability
of distributions for the Terminating Fund unitholders, since ARIF
II distributions are targeted to approximate the average 10-Year
U.S. Treasury Note yield plus 3%, whereas the Terminating Fund has
no targeted yield.
Costs of the Merger
All costs and expenses associated with the Merger will be borne
by the Manager.
Unitholder approval
The Merger will require approval of two-thirds of the votes cast
by unitholders of a Terminating Fund at a special meeting of the
unitholders to be held on February 27, 2008. The record date for
the purpose of determining the unitholders entitled to receive
notice and vote at the meetings was the close of business on
January 15, 2008.
The proposed Merger is subject to the acceptance and approval by
the TSX.
Sentry Select Capital Corp.
Sentry Select Capital Corp. is a Canadian wealth management
company that manages approximately $8 billion in gross assets as of
December 31, 2007. The company offers a diverse range of investment
products including closed-end trusts, mutual funds,
principal-protected notes and flow-through limited partnerships,
covering a variety of domestic and global mandates. Sentry Select
is the manager and/or advisor to 30 TSX-listed reporting issuers.
In addition, Sentry Select manages and/or provides advisory
services to four reporting issuers listed on the TSX Venture
Exchange.
Certain statements included in this news release constitute
forward-looking statements, including, but not limited to, those
identified by the expressions "expect", "intend", "will" and
similar expressions to the extent they relate to Sentry Select. The
forward-looking statements are not historical facts but reflect
Sentry Select's current expectations regarding future results or
events. These forward-looking statements are subject to a number of
risks and uncertainties that could cause actual results or events
to differ materially from current expectations. Although Sentry
Select believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and,
accordingly, readers are cautioned not to place undue reliance on
such statements due to the inherent uncertainty therein. Sentry
Select undertakes no obligation to update publicly or otherwise
revise any forward-looking statement or information whether as a
result of new information, future events or other such factors
which affect this information, except as required by law.
The Exchange Tower
130 King Street West
Suite 2850, P.O. Box 104
Toronto, Ontario M5X 1A4
Contacts: Sentry Select Capital Corp. Investor Services
(broker/investor inquiries) 1-888-246-6656 (416) 364-1197 (FAX)
Sentry Select Capital Corp. Kinga Lam (media inquiries)
1-888-246-6656 (416) 364-1197 (FAX) Email: info@sentryselect.com
Website: www.sentryselect.com
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