Sentry Select Global Index Income Trust Completes $152.5M Offering

On September 14, 2001, Sentry Select Global Index Income Trust, an investment trust, completed an offering of 6.1 million trust units at a price of $25.00 per trust unit for gross proceeds of $152.5 million. In addition, the agents have an over-allotment option in respect of up to 915,000 additional trust units for potential additional gross proceeds of $22,875,000.

The investment objectives of the trust are: (i) to return the original issue price of the units to unitholders on August 31, 2013; (ii) to provide unitholders with a stable stream of monthly distributions targeted to be at least $0.171875 per unit (8.25 per cent per annum on the original issue price); and (iii) to preserve and potentially enhance the value of the trust's Managed Portfolio. To accomplish the first objective the trust purchased securities (the Fixed Portfolio) with approximately 50 per cent of the gross proceeds of the offering and entered into a forward agreement with National Bank of Canada whereby the bank agreed to purchase the Fixed Portfolio on August 31, 2013 for an amount equal to the gross proceeds of the offering. To achieve the other objectives, it proposes to invest the balance of the net proceeds (the Managed Portfolio) in a diversified portfolio consisting principally of securities that are designed to replicate the performance of various global equity indexes or sector indexes and to write covered call options on those securities and those indexes and to write cash covered put options.

Borden Ladner Gervais LLP acted for the trust with a team that included Paul Findlay and Daniel Westreich (securities/corporate), Karen Koszo (forward and securities lending) and Stephen Fyfe and Larissa Tkachenko (tax). Blake, Cassels & Graydon LLP acted for the agents; National Bank Financial, BMO Nesbitt Burns, CIBC World Markets Inc., Canaccord Capital Corporation, Desjardins Securities Inc., Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Yorkton Securities Inc., Research Capital Corporation and Trilon Securities Corporation with a team that included Jeff Glass, Stephen Ashbourne, Anoop Dogra and Robyn Keinick (securities/corporate) and Ron Richler (tax). François Bourassa, Chief Legal Advisor, International and Capital Markets of National Bank of Canada represented the bank.