TORONTO, Oct. 1 /CNW/ - YIELDPLUS Income Fund ("YIELDPLUS" or the "Fund") is pleased to announce that it has closed the offering of Rights to its unitholders raising gross proceeds of $59,672,740 (10,849,589 Units), being the maximum permitted under the offering. Each unitholder was given a combined unit, comprised of one transferable right ("Right") of the Fund and one transferable warrant ("Warrant") of the Fund. Three Rights entitled the holder to purchase one YIELDPLUS Unit at a price of $5.50 until 4:00 p.m. (Toronto time) on September 25, 2009. The Rights Offering was significantly oversubscribed.
The directors and officers of the Manager exercised all their Rights to acquire Units under the Basic Subscription Privilege. Units issued pursuant to this Rights Offering will participate in distributions declared by the Fund commencing with the October 31, 2009 record date.
The net proceeds of the Rights 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 is $0.84 per Unit.
The Warrants commenced trading on the Toronto Stock Exchange under the symbol YP.WT on August 26, 2009. One Warrant entitles 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.
YIELDPLUS Income Fund trades on the Toronto Stock Exchange under the symbol YP.UN.
Certain statements in this press release may constitute forward-looking information, including statements regarding use of proceeds, cash-on-cash yield and expected future distributions. 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.
SOURCE YIELDPLUS Income Fund
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