Saba Capital Reaches Agreement With Citadel Income Fund

NEW YORK, Sept. 14, 2023 (GLOBE NEWSWIRE) -- Saba Capital Management, L.P. and certain associated parties (collectively "Saba" or "we") today announced that it has reached an agreement with Citadel Income Fund (TSX: CTF.UN) ("Citadel" or the "Fund") and its manager, Artemis Investment Management Limited ("Artemis").

Under the terms of the agreement, the Fund will commence an offer (the "Redemption Offer") to redeem for cash, on a pro rata basis from all unitholders of the Fund ("Unitholders") who tender all or a portion of their Fund units (the "Units") to such Redemption Offer, not less than 7,186,900 Units at an amount per Unit equal to the net asset value ("NAV") less redemption costs equal to 4.5% of NAV. In exchange for the Redemption Offer, Saba agreed to withdraw its requisitions previously submitted to the Fund and to customary releases and standstill provisions. The agreement also contains restrictions on the ability of Citadel to take certain actions during the 12-month standstill period and an expense reimbursement provision.

"Saba is pleased to have reached this agreement through engagement with the Fund and its manager," said Paul Kazarian, Partner and Portfolio Manager at Saba. "Our actions led to the Fund publicly declaring a 40% redemption and we are glad that, through private negotiation, we were able to increase this to 70% and obtain a higher price. We believe all unitholders will benefit from the Redemption Offer resulting from the agreement as it enables unitholders to tender their Units at a price close to the Fund's net asset value."

As of the date hereof, funds managed by Saba hold 2,176,014 Units, representing approximately 21.19% of Citadel's issued and outstanding Units, and it intends that all such Units will be tendered to the Redemption Offer. Depending on the level of participation of Unitholders in the Redemption Offer, following the redemption the funds managed by Saba may not hold any Units. The value of consideration to be received per Unit and in total is not yet known, but it will be an amount per Unit equal to the NAV less redemption costs equal to 4.5% of NAV.

Pursuant to the agreement with Citadel and Artemis, Saba has agreed to vote any Units it beneficially owns at any meeting of Unitholders held in the period that is 12 months following the date of the settlement agreement in favor of certain amendments to Citadel's Declaration of Trust including amendments to Citadel's investment strategy, objectives, and restrictions for the limited purpose of permitting Citadel to, and only to the extent required to permit Citadel to, exclusively invest in a portfolio of resale residential real estate properties in Canada through co-ownership agreements with homebuyers and reducing the management expense ratio (which includes the management fee) to a cap of 2.5% and to remove the annual and monthly redemption rights of Unitholders (the "Conversion"). After giving effect to the Fund Conversion, the Fund will no longer be an investment fund, and will operate as a non-investment fund reporting issuer.

The Fund's head office is located at 1325 Lawrence Avenue East, Suite 200, Toronto, ON M3A 1C6.

About Saba Capital

Saba Capital Management, L.P. is a global alternative asset management firm that seeks to deliver superior risk-adjusted returns for a diverse group of clients. Founded in 2009 by Boaz Weinstein, the Firm is a pioneer of credit relative value strategies and capital structure arbitrage. The Firm is headquartered in New York City. Learn more at www.sabacapital.com.

Contacts
Longacre Square Partners
Greg Marose / Kate Sylvester, 646-386-0091
[email protected] / [email protected]