By TORONTO, ONTARIO - January 22, 2008 / CCN Matthews: As a result of the Bank of Canada's decision today to decrease the bank rate in Canada by 0.25%, the Prime Rate has also decreased by 0.25% to 5.75%. As a result, the February dividends payable to both Preferred Shares and Class A shares of Prime Rate Plus are each set to decrease by 0.25%. This would result in the February Preferred share dividend once declared being set at an annualized rate of 6.50% (Prime Rate plus 0.75%) and the Class A share dividend being set at an annualized rate of 7.75% (Prime Rate plus 2.0%).
Prime Rate Plus Corp. invests in a portfolio of six publicly traded Canadian Banks as follows:
Bank of Montreal National Bank of Canada Bank of Nova Scotia
Canadian Imperial Bank of Commerce Royal Bank of Canada Toronto-Dominion Bank
Shares held within the Portfolio are expected to range between 5-20% in weight but may vary from time to time.
The fund's investment objectives are:
Floating Rate Preferred Shares:
(i) to provide holders of the Preferred Shares with cumulative preferential floating rate monthly cash dividends at a rate per annum equal to the Prime Rate in Canada plus 0.75% (minimum 5%,
maximum 7%) based on original issue price of $10.00 per share
(ii) on or about December 1, 2012 (termination date), to pay the holders of the Preferred Shares the original issue price of those shares.
(i) to provide holders of the Class A Shares with regular floating rate monthly cash distributions targeted to be at a rate per annum equal to the Prime Rate in Canada plus 2.0% (minimum 5%,
maximum 10%) based on original issue price of $15.00 per share
(ii) on or about December 1, 2012 (termination date), to pay the holders of Class A Shares at least the original issue price of those shares.
For further information, please contact Investor Relations:
Royal Trust Tower, 77 King Street West, PO Box 341, Toronto, Ontario, M5K 1K7
info@ qua d r avest.com • w w w . primerat ep lus.com • 416.30 4.4 443 • 1.877.47 8 .23 7 2
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