Black Diamond Income Fund
TSX : BDI.UN

Black Diamond Income Fund

December 09, 2009 08:53 ET

Black Diamond Income Fund Announces Closing of $28 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Dec. 9, 2009) -

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

Black Diamond Income Fund ("Black Diamond" or the "Fund") (TSX:BDI.UN) is pleased to announce that it has closed its previously announced bought deal trust unit financing with a syndicate of 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. At closing, a total of 1,842,110 trust units of the Fund were issued at a price of $15.20 per trust unit for gross proceeds of $28,000,072, which included the full exercise by the underwriters of their over-allotment option to purchase an additional 197,370 trust units.

Net proceeds of the financing will be used to fund Black Diamond's 2010 capital expenditure program, potential acquisitions, repay bank indebtedness and for general working capital purposes.

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 Black Diamond Dene Limited Partnership, is to rent modular structures for use as workforce accommodation and temporary workspace, rent various types of oilfield equipment used in the exploration and production of oil and gas, and to provide complementary services including transportation, installation, dismantling, repair and maintenance of modular structures and oilfield equipment, as well as related services through three operating divisions consisting of Black Diamond Camps, BOXX Modular and Black Diamond Energy Services.

Reader Advisory

Certain information in this news release contains forward-looking statements including, without limitation, management's assessment of future plans and operations and anticipated use of proceeds of the financing. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Black Diamond's control including, without limitation, 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 (www.sedar.com) and at Black Diamond's website (www.blackdiamondincomefund.com). 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 Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

Contact Information

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