TORONTO, Aug. 19 /CNW/ - Yieldplus Income Fund ("Yieldplus" or the
"Fund") is pleased to announce that it has filed a final prospectus in
connection with an offering of combined units. Each combined unit is comprised
of one transferable right ("Right") of the Fund and one transferable warrant
("Warrant") of the Fund. The Rights and Warrants will be issued as separate
securities on the record date, being August 28, 2009. Rights and Warrants may
be exercised commencing on August 31, 2009.
Terms of Rights:
The Rights will commence trading on the Toronto Stock Exchange under the
symbol YP.RT on August 26, 2009. Three Rights will entitle the holder to
purchase one Yieldplus Unit at a price of $5.50 until 4:00 p.m. (Toronto time)
on September 25, 2009, at which time all unexercised Rights will expire with
closing of exercised Rights to occur on or about October 1, 2009. The
subscription price of $5.50 represents a discount to the closing market price
as at August 17, 2009 of approximately 9%.
Units issued pursuant to this Rights Offering will participate in
distributions declared by the Fund commencing with the October 31, 2009 record
date. The directors and officers of the Manager who own Units intend to
exercise all their Rights to acquire Units under the Basic Subscription
Terms of Warrants:
The Warrants will commence trading on the Toronto Stock Exchange under
the symbol YP.WT on August 26, 2009. One Warrant will entitle the holder to
purchase one Yieldplus Unit at a price of $6.50 at or prior to 4:00 p.m.
(Toronto time) on February 26, 2010, at which time all unexercised Warrants
will expire. The warrant exercise price of $6.50 is equal to the net asset
value of the Fund as at August 17, 2009.
Other Combined Offering Terms:
Holders of Rights and Warrants who subscribe for Units under the Basic
Subscription Privileges may subscribe for additional Units, if available.
Details regarding the Additional Subscription Privileges are outlined in the
final prospectus of the Fund.
The net proceeds of the Offering will be invested by the Fund in
accordance with its investment objectives. The Fund's investment objectives
are to (i) pay monthly distributions to Unitholders, (ii) return to
Unitholders upon the termination of the Fund at least the original
subscription price of the Units, and (iii) enhance long-term total return
through capital appreciation of the investment portfolio. The Fund diligently
selects and actively manages a diversified portfolio comprised primarily of
high yielding equity securities of issuers operating in various industries and
geographic regions. On an annualized basis, the current distribution rate of
$0.84 per Unit represents a cash-on-cash yield of approximately 14% based on a
Unit market price of $6.05 as at August 17, 2009.
Yieldplus Income Fund trades on the Toronto Stock Exchange under the
Certain statements in this press release may constitute forward-looking
information, including statements regarding cash-on-cash yield.
Forward-looking statements are subject to various risks and uncertainties that
could cause estimates to differ materially from the expectations expressed,
including the risk that the per Unit distributions may decrease below the
amount used in calculating the cash-on-cash yield, which could occur for
various reasons beyond the control of the Fund such as a decrease in the
distributions paid by the issuers of securities included in the Fund's
portfolio or a change in general economic conditions. The forward-looking
information contained in this press release constitutes the Fund's current
estimate, as of the date of this press release, with respect to the matters
covered hereby. Investors and others should not assume that any
forward-looking statement contained in this press release represents the
Fund's estimate as of any date other than the date of this press release.
For further information:
For further information: or to obtain a copy of the prospectus, please
visit our website at www.middlefield.com or contact Nancy Tham, Senior
Vice-President, at (416) 847-5349 or toll-free at 1-888-890-1868