Arctic Glacier Income Fund
TSX : AG.UN

Arctic Glacier Income Fund

May 25, 2006 08:57 ET

Arctic Glacier Announces Completion of Public Offerings

WINNIPEG, MANITOBA--(CCNMatthews - May 25, 2006) - Arctic Glacier Income Fund (TSX:AG.UN) today announced it has completed the public offerings of subscription receipts and extendible convertible unsecured subordinated debentures associated with its previously announced US$190 million acquisition of California Ice.

As announced on May 9, 2006, the California Ice acquisition comprises six companies that as a group represent the leading independent manufacturer and distributor of packaged ice in the state of California and one of the four largest packaged ice companies in the U.S. The closing of the acquisition of four of the companies that comprise California Ice (the "Initial Acquisition") is expected to occur on or about May 25, 2006 while the closing of the acquisition of the two remaining companies that comprise California Ice is expected to occur on or about August 7, 2006.

The public offerings, led by Scotia Capital Inc. and TD Securities Inc., consisted of:

- 4,673,000 subscription receipts at a price of $10.70 per subscription receipt, for gross proceeds of $50 million. The subscription receipts will be exchangeable on a one-for-one basis for units of the Fund upon the closing of the Initial Acquisition. The subscription receipts are listed for trading on the Toronto Stock Exchange under the trading symbol AG.R.

- $100 million principal amount of extendible convertible unsecured subordinated debentures with an initial maturity date of June 30, 2006, which is automatically extended to July 31, 2011 upon the closing of the Initial Acquisition. The convertible debentures carry a coupon of 6.50% and are convertible, at the option of the holder, into units of the Fund at a price of $12.60 per unit. The debentures are listed for trading on the Toronto Stock Exchange under the trading symbol AG.DB.

Arctic Glacier Income Fund, through its operating company, Arctic Glacier Inc., is a leading producer, marketer and distributor of high-quality packaged ice in North America under the brand name of Arctic Glacier® Premium Ice. Arctic Glacier operates 26 production plants and 41 distribution facilities across Canada and the central, midwest and northeastern United States, servicing more than 53,000 retail accounts.

Arctic Glacier Income Fund trust units are listed on the Toronto Stock Exchange under the trading symbol AG.UN.

Forward-Looking Statements

This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, and there is no assurance that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as at the date of this news release, and the Fund assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances.

Contact Information

  • Arctic Glacier Inc.
    Robert Nagy
    President & CEO
    Toll free investor relations: 1 (888) 573-9237
    or
    Arctic Glacier Inc.
    Keith McMahon
    Executive VP & Chief Financial Officer
    Toll free investor relations: 1 (888) 573-9237
    www.arcticglacierinc.com