Citadel Multi-Sector Income Fund Completes IPO

On February 14, 2003, Calgary-based Citadel Multi-Sector Income Fund completed its initial public offering of 27,055,273 trust units for gross proceeds of $270,552,730. Of the total issuance, 20,000,000 trust units were issued for cash proceeds, while the remaining 7,055,273 trust units were issued in exchange for units of 59 selected Canadian income funds pursuant to an exchange option provided to prospective purchasers.

The units of Canadian income funds tendered to the offering pursuant to the exchange option form Citadel Multi-Sector’s current portfolio, while the net cash proceeds of the offering will be used by Citadel Multi-Sector to acquire further portfolio securities in accordance with its investment objectives and investment strategy, and (subject to its investment restrictions) to complement the existing portfolio.

The offering was made through a syndicate of agents led by CIBC World Markets Inc. and BMO Nesbitt Burns Inc., and including TD Securities Inc., National Bank Financial Inc., Scotia Capital Inc., Canaccord Capital Corporation, Desjardins Securities Inc., Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Bieber Securities Inc. and First Associates Investments Inc.

Stikeman Elliott LLP acted for Citadel Multi-Sector, with a team comprised of Keith Chatwin (securities/corporate) and David Weekes (tax). Macleod Dixon LLP acted for the agents, with a team comprised of Kent Kufeldt and Harvey Steblyk (securities/corporate) and Edward Heakes and Darren Hueppelsheuser (tax).