Arctic Glacier Income Fund

Arctic Glacier Income Fund

January 16, 2007 15:45 ET

Arctic Glacier Income Fund Announces $70 Million Bought Deal Equity Financing

WINNIPEG, MANITOBA--(CCNMatthews - Jan. 16, 2007) -

Not for distribution to U.S. newswire services or for dissemination in the United States

Arctic Glacier Income Fund ("Arctic Glacier") (TSX:AG.UN) today announced it has entered into an agreement to sell 5,350,000 Trust Units at a price of $13.10 per Trust Unit to raise gross proceeds of approximately $70 million on a bought deal basis. The underwriting syndicate is led by Scotia Capital Inc. and TD Securities Inc., and includes BMO Capital Markets, National Bank Financial Inc., and Wellington West Capital Markets Inc. (collectively, the "Underwriters"). Arctic Glacier has also granted the Underwriters an Over-Allotment Option, exercisable in whole or in part for a period of 30 days following closing, to purchase up to an additional 763,400 Trust Units at the same offering price. If the Over-Allotment Option is fully exercised, the total gross proceeds to Arctic Glacier will be approximately $80 million. The offering will be made in all of the provinces and territories of Canada and is expected to close on February 1, 2007, subject to regulatory approvals.

The net proceeds of the offering will be used to repay outstanding indebtedness such that Arctic Glacier will have the capacity to fund additional investments in its existing operations as well as acquisitions.

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 34 production plants and 50 distribution facilities across Canada and the northeast, central and western United States, servicing more than 68,000 retail accounts.

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

This news release contains forward-looking statements relating to expected future plans, financing initiatives and operations. These statements are based on current views, expectations and assumptions that are subject to risks and uncertainties which are difficult to predict, including risks and uncertainties relating to the uncertainty of expected operating results, industry conditions, availability of financing alternatives and future capital needs. Actual results might differ materially from those suggested in any forward-looking statements whether as a result of new information, future developments or otherwise.

Contact Information

  • Arctic Glacier Income Fund
    Keith McMahon
    President & CEO
    Toll free investor relations: 1-888-573-9237
    Arctic Glacier Income Fund
    Douglas Bailey
    Chief Financial Officer
    Toll free investor relations: 1-888-573-9237