TORONTO, April 21 /CNW/ - Stornoway Portfolio Management Inc.
("Stornoway"), the manager of the Ravensource Fund (the "Fund") (TSX:
RAV.UN), is pleased to announce the terms of a rights offering to
eligible unitholders of the Fund to raise gross proceeds of up to
$3,677,521 (the "Offering").
The Fund will issue to eligible holders ("Unitholders") of its
outstanding units of the Fund ("Units") of record as at the close of
business on April 29, 2011 (the "Record Date"), rights (each, a
"Right") to subscribe for a maximum of 356,004 Units on the terms set
forth in a rights offering circular (the "Circular") to be mailed to
Unitholders and available under the Fund's profile on SEDAR at www.sedar.com. Each such holder will receive one Right for each Unit held on the
Record Date. Four Rights will entitle the holder to purchase one Unit
at a price of $10.33, representing a discount of 5% to the average of
the closing bid and ask for the Units on the Toronto Stock Exchange on
April 20, 2011 and a 5.6% discount to the Net Asset Value of the Units
as of April 14, 2011.
The Rights expire at 4:00 p.m. (Toronto time) on May 30, 2011, after
which time unexercised Rights will be void and without value. The
Rights will be listed on the Toronto Stock Exchange and cease trading
at 12:00 p.m. (Toronto time) on May 30, 2011.
The Rights and Units are not being issued to, and the Rights may not be
exercised by, persons who are residents of any jurisdiction other than
each of the provinces of Canada, subject to certain exceptions.
Reference is made to the section in the Circular entitled "Ineligible
Net proceeds of the Offering, after deduction of estimated expenses of
$100,000, assuming full subscription are estimated to be $3,577,521.
No solicitation fees are payable in connection with the Offering. The
net proceeds from the exercise of Rights offered hereunder will be used
to acquire, in the open market and through private placements,
securities in accordance with the Fund's investment objective, policies
About Ravensource Fund
The Fund is a closed-end trust that specializes in North American high
yield debt, distressed debt and equity securities. Annualized total
returns for the one, three and five year periods ended December 31,
2010 were 32.78%, 4.85% and 6.42% respectively, as disclosed in the
December 31, 2010 Management Report of Fund Performance. Additional
information relating to the Fund is available on its website at www.ravensource.ca and at www.sedar.com.
Investments in the Fund are subject to management fees and expenses.
Please read the disclosure documents related to the Fund found on www.sedar.com prior to trading in or exercising Rights. The indicated rates of
return are the historical annual compounded total returns including
changes in Unit Net Asset Value and distributions and do not take into
account sales, redemption, distribution or optional charges or income
taxes payable by any holder of Units that would have reduced returns.
The value of Units of the Fund and returns thereon are not guaranteed,
values and returns change frequently and past performance may not be
About Stornoway Portfolio Management Inc.
Stornoway Portfolio Management Inc. is a specialized investment
management firm whose key areas of focus are distressed debt and
special situation equity investments. Stornoway was founded in 2004
and is registered with the Ontario Securities Commission as a Portfolio
Manager and Exempt Market Dealer. Stornoway became the investment
manager to the Fund as of July 1, 2008.
In addition to the Ravensource Fund, Stornoway manages the Stornoway
Recovery Fund LP. Additional information relating to Stornoway is
available on its website at www.stornowayportfolio.com.
SOURCE Ravensource Fund
For further information:
Stornoway Portfolio Management Inc.
30 St. Clair Avenue West, Suite 901
Toronto, Ontario M4V 3A1
Attention: Scott Reid
Telephone: (416) 250-2845