Sterling Shoes announces monthly cash distribution

19 Nov '07

2 min read

Sterling Shoes Income Fund announced that its Board of Trustees has approved a cash distribution of $0.12 per trust unit for the period from November 1, 2007 to November 30, 2007, payable on December 17, 2007 to unitholders of record at the close of business on November 30, 2007.

Through a series of increases, the Fund has increased its monthly payout more than 34% since the Fund's initial public offering in July 2005. Furthermore, the Fund made special cash distributions of $0.47 per unit for 2006.

These special cash distributions were paid in tranches on January 15, 2007 and March 30, 2007. These special cash distributions are not indicative of future performance.

On October 3, 2007 the Fund closed an offering of $25 million of convertible unsecured subordinated debentures at a price of $1,000 per debenture. The Debentures bear interest at an annual rate of 6.5% payable semi-annually in arrears on October 31 and April 30 in each year commencing April 30, 2008.

The maturity date for the Debentures is October 31, 2012. The Offering was completed on a "bought deal" basis by a syndicate of underwriters led by CIBC World Markets Inc, including BMO Capital Markets, Canaccord Capital Corporation and TD Securities Inc.

The net proceeds of the Offering will be used by the Fund to repay existing indebtedness, to pay for the Fund's new store expansion projects and for general corporate purposes.

Sterling Shoes Income Fund

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