STW.PR.A : Issuer Bid

STRATA Income Fund has announced:

its intention to make a normal course issuer bid for its Capital Units and Preferred Securities through the facilities of the Toronto Stock Exchange (the “TSX”). This normal course issuer bid is intended to commence on March 8, 2007 and will terminate on March 7, 2008. In accordance with the Declaration of Trust by which STRATA is governed, market purchases pursuant to its normal course issuer bid may be effected by the Fund.
    At February 27, 2007 there were 9,215,056 Capital Units and 6,214,711 Preferred Securities issued and outstanding including 9,211,056 Capital Units and 6,209,696 Preferred Securities in the public float. STRATA may, during the 12 month period commencing March 8, 2007 purchase on the TSX up to 921,105 Capital Units and 620,969 Preferred Securities, being 10% of the respective public floats. Since March 8, 2006, STRATA has purchased 6,100 Capital Units at an average price of $8.40 per Capital Unit under its previously approved normal course issuer bid. STRATA believes that its Capital Units and Preferred Securities represent good value for the Fund and purchases under the normal course issuer bid may serve to enhance returns to securityholders.

A reasonable course of action, given that the capital units’ NAV is $9.30 and the capital units closed on the TSX at $8.00!

We shall see how far (if at all!) the price of preferred securities goes up in response to the bid … the recent partial redemption at $10.60 has already been a windfall to holders!

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