Press release from Marketwire
Front Street U.S. MLP Income Fund Ltd. and Front Street Strategic Yield Fund Ltd. - Successful Completion of Merger
Thursday, August 01, 2013
Front Street U.S. MLP Income Fund Ltd. and Front Street Strategic Yield Fund Ltd. - Successful Completion of Merger09:00 EDT Thursday, August 01, 2013
TORONTO, ONTARIO--(Marketwired - Aug. 1, 2013) -
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. WIRE SERVICES
Front Street U.S. MLP Income Fund Ltd. ("FS MLP") (TSX:MLP) and Front Street Strategic Yield Fund Ltd. ("FSSYL") (TSX:FSS) announced that the merger of FS MLP and FSSYL (together, the "Funds") was completed. The Funds merged to form a new amalgamated corporation, known as Front Street U.S. MLP Income Fund Ltd. ("New MLP Fund").
Pursuant to the completed merger, each shareholder of FSSYL will receive 0.455535 Equity Shares, Series C of New MLP Fund for each Equity Share of FSSYL held at the close of business on July 31, 2013. This exchange ratio was calculated based on the net asset value per Equity Share of FSSYL at the close of business on July 31, 2013, divided by the net asset value per Equity Share, Series C of FS MLP at the close of business on July 31, 2013. Equity Shares of FSSYL had a net asset value of $5.1122 at the close of business on July 31, 2013, and Equity Shares, Series C of FS MLP had a net asset value of $11.2224 at the close of business on July 31, 2013.
Each shareholder of FS MLP will receive one Equity Share of New MLP Fund for each Equity Share of FS MLP held at the close of business on July 31, 2013. Shareholders who held Equity Shares, Series C of FS MLP will receive Equity Shares, Series C of New MLP Fund, and shareholders who held Equity Shares, Series U of FS MLP received Equity Shares, Series U of New MLP Fund.
As a result of the merger, the Equity Shares of FS MLP and FSSYL will be de-listed from the TSX. The Equity Shares, Series C of New MLP Fund will be listed on the TSX under the symbol "MLP". As indicated in the joint management proxy circular of the Funds dated March 8, 2013 with respect to the merger, distributions for New MLP Fund will be made on a monthly basis. Because of the merger date, New MLP Fund will make a distribution for the period from July 1, 2013 to the quarter ended September 30, 2013 and will make monthly distributions thereafter.
Certain statements in this press release may be viewed as forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, intentions, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "plans", "estimates" or "intends" (or negative or grammatical variations thereof), or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including as a result of changes in the general economic and political environment, changes in applicable legislation, and the performance of each Fund. There are no assurances the Funds can fulfill such forward-looking statements and the Funds do not undertake any obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing one or more of the Funds, some of which are beyond the control of the Funds.
FOR FURTHER INFORMATION PLEASE CONTACT:
Front Street Capital