CI Financial Corp. announces new debenture financing

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TSX Symbol: CIX

TORONTO, Dec. 7 /CNW/ - CI Financial Corp. ("CI") announced today that its wholly owned subsidiary CI Investments Inc. has entered into an agreement to sell $300 million principal amount of debentures due 2016, which are unconditionally guaranteed by CI. The debentures will bear interest at the rate of 3.94% per year until December 13, 2015, and thereafter at a floating rate based on the three-month bankers' acceptance rate.

This is the first time that CI Investments has issued debt securities and the issue was over-subscribed by investors. "We believe the exceptional demand for this offering reflects the market's confidence in the strength and stability of CI, and it leaves CI well positioned to pursue strategic opportunities in 2011," said Stephen A. MacPhail, CI President and Chief Executive Officer.

The offering was made on an agency basis under a CI Investments debt shelf prospectus dated December 7, 2010, and co-led by Scotia Capital Inc. and CIBC World Markets Inc. The agency group also included BMO Nesbitt Burns Inc., National Bank Financial, TD Securities Inc., Stonecap Securities Inc., and GMP Securities LP.

CI Investments intends to use a portion of the net proceeds of the offering to pay for the acquisition of Hartford Investments Canada Corp., which was announced on October 21, 2010 and is scheduled to close on or about December 15, 2010. The balance of the net proceeds will be used to pay down amounts owing under the CI credit facility and for general corporate purposes. The closing of the offering is scheduled for December 13, 2010, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals.

The debentures have been rated BBB + by Standard & Poor's and A (low) by DBRS.

CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned wealth management company with approximately $91.3 billion in fee-earning assets at November 30, 2010. CI offers a broad range of investment products and services, including an industry-leading selection of investment funds, and is on the Web at www.ci.com/cix.

This press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation, including in relation to anticipated closing dates of the debenture financing and acquisition of Hartford Investments Canada Corp. and intended use of proceeds of the offering. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "planned", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to capital markets and additional funding requirements, fluctuating interest rates and general economic conditions, legislative and regulatory developments, the nature of our customers and rates of default, satisfaction of closing conditions and competition as well as those factors discussed in the Company's documents filed on SEDAR (www.sedar.com).

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.

This news release and the information contained herein does not constitute an offer to sell or a solicitation of an offer to buy securities in the United States or in any other jurisdiction in which such an offer or solicitation may be unlawful, and securities may not be offered or sold in the United States absent registration or exemption from registration.

For further information:

Stephen A. MacPhail
President and Chief Executive Officer
CI Financial Corp.
[phone]