Black Diamond Income Fund

Black Diamond Income Fund

November 16, 2009 16:08 ET

Black Diamond Income Fund Announces 2010 Capital Expenditure Budget and Concurrent $25 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Nov. 16, 2009) -


Black Diamond Income Fund (TSX:BDI.UN) ("Black Diamond" or the "Fund") is pleased to announce that the Board of Directors of Black Diamond Group Inc., manager of the Fund, has approved a 2010 capital expenditure budget of $69 million. The majority of these expenditures are expected to be dispersed over all four fiscal quarters and across all three operating divisions in a generally non-speculative manner consistent with previous years.

In conjunction with the approval of its 2010 capital expenditure budget, Black Diamond is pleased to announce that it has entered into an agreement with a syndicate of underwriters (the "Underwriters"), led by Raymond James Ltd. and including BMO Capital Markets, Acumen Capital Finance Partners Limited, FirstEnergy Capital Corp., Peters & Co. Limited, Blackmont Capital Inc. and Clarus Securities Inc., in connection with a "bought deal" trust unit financing by way of a short form prospectus of an aggregate of 1,644,740 trust units at a price of $15.20 per trust unit for aggregate gross proceeds of approximately $25 million. Black Diamond has also granted the Underwriters an over-allotment option to purchase up to an additional 197,370 trust units at a price of $15.20 per trust unit, for further gross proceeds of approximately $3 million, which would increase the offering to approximately $28 million if fully exercised. Net proceeds of the financing will be used to fund the Fund's 2010 capital expenditure budget, potential acquisitions, repay bank indebtedness and for general corporate purposes. The offering is subject to regulatory approval, including approval of the Toronto Stock Exchange and is expected to close on or about December 9, 2009.

Purchasers of trust units under the offering announced herein, who are securityholders of record on December 31, 2009, will be entitled to receive the December trust unit distribution that will be payable on January 15, 2010.


The Fund is an unincorporated open ended investment trust governed by the laws of the Province of Alberta. The principal undertaking of the Fund, through its indirect wholly-owned subsidiary, Black Diamond Limited Partnership, and through its 50% equity participation in the Black Diamond Dene Limited Partnership, is to rent modular structures for use as workforce accommodation and temporary workspace, and to provide complementary services including transportation, installation, dismantling, repair and maintenance of modular structures, as well as related services through three operating divisions consisting of Black Diamond Camps, BOXX Modular and Black Diamond Energy Services.

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. All sales will be made through registered securities dealers in jurisdictions where the offering has been qualified for distribution. The securities offered are not, and will not be, registered under the securities laws of the United States of America, nor any state thereof and may not be sold in the United States of America absent registration in the United States or the availability of an exemption from such registration.

Advisory Respecting Forward-Looking Statements

Certain information in this news release contains forward-looking statements including the Fund's 2010 capital expenditure budget, the closing date of the offering and the use of proceeds of the offering. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Black Diamond's control including, without limitation, the receipt of all regulatory approvals and the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could effect Black Diamond's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ( and at Black Diamond's website ( Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Black Diamond does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Black Diamond Group Inc., Manager, Black Diamond Income Fund
    Trevor Haynes
    President and Chief Executive Officer
    (403) 206-4737
    (403) 264-9281 (FAX)
    Black Diamond Group Inc., Manager, Black Diamond Income Fund
    Michael Burnyeat
    Vice President, Finance and Chief Financial Officer
    (403) 206-4740
    (403) 264-9281 (FAX)