TORONTO, ONTARIO--(CCNMatthews - June 6, 2005) - Prime Rate Plus Corp. ("PRT Corp.") is pleased to announce the filing of a preliminary prospectus for a proposed offering, which offers Class A Shares and Preferred Shares.
PRT Corp.'s Floating Rate Class A Shares offer regular monthly cash distributions initially targeted to be equal to the prime rate in Canada plus 2.00% with a minimum annual targeted rate of 5% and a maximum annual targeted rate of 10%, with the objective of repaying their original issue price upon termination. The Class A shares will also provide holders with any capital appreciation or dividend growth achieved in the investment portfolio.
PRT Corp.'s Floating Rate Preferred Shares offer, cumulative preferential monthly cash dividends of a rate per annum equal to the prime rate in Canada plus 0.75% with a minimum annual rate of 5.00%, and a maximum annual rate of 7%, wiith the objective of repaying their original issue price upon termination.
The net proceeds from the proposed offering will be used by PRT Corp. to invest in a portfolio of six publicly traded Canadian Banks as follows:
Bank of Montreal Canadian Imperial National Bank of Canada
Bank of Commerce
Royal Bank of Canada Bank of Nova Scotia Toronto-Dominion Bank
Shares held within the Portfolio will generally represent no les than 5% and no more than 20% of the net asset value.
To generate additional returns above the dividend income earned on the portfolio, PRT Corp. will engage in a selective covered call writing program.
CIBC and RBC Capital Markets are co-lead agents for the proposed offering. The other members of the syndicate are TD Securities Inc., National Bank Financial, Desjardins Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Dundee Securities Corporation, Raymond James Ltd, Bieber Securities Inc., First Associates Investments Inc., Richardson Partners Financial Limited and Wellington West Capital Inc.
Please visit the Prime Rate Plus Corp. website at http://www.primerateplus.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Prime Rate Plus Corp. Investor Relations (416) 304-4443 or 1 (877) 478-2372 info@quadravest.com http://www.primerateplus.com
