Canexus Income Fund

Canexus Income Fund

April 16, 2010 12:35 ET

Canexus Announces Amendments to and Extension of Credit Facilities

CALGARY, ALBERTA--(Marketwire - April 16, 2010) - Canexus Income Fund (TSX:CUS.UN) (the "Fund") today announced the closing of amendments to and extension of Canexus Limited Partnership's ("Canexus LP") senior secured credit facilities.

Effective April 15, 2010, Canexus LP's Extendible Revolving Credit Facility has been increased from $420 million to $440 million and its US$20 million Senior Secured Revolving Credit Facility has been repaid and cancelled. Maturity of Canexus LP's senior secured credit facilities (which now includes the $440 million Extendible Revolving Credit Facility and the US$10 million EDC Extendible Revolving Credit Facility) has been extended to August 18, 2012.

"We continue to benefit from the relaxed financial covenants established in 2008 to finance the Technology Conversion Project (TCP) at our North Vancouver chlor-alkali facility which is expected to start-up in late May," said Gary Kubera, President and CEO. "Additionally, our amended senior secured credit facilities agreements and the note indenture governing the Senior Secured Notes conditionally provide for further relaxation of financial covenants for an extended period to potentially finance a possible next phase of expansion at our North American Terminal Operations at Bruderheim, Alberta."

"We are pleased with the continued strong support for Canexus from our lenders and our ability to maintain the financial flexibility to finance highly attractive growth projects that should benefit unitholders," said Mr. Kubera.

At March 31, 2010, Canexus LP had outstanding borrowings of approximately $300 million under its senior secured credit facilities and senior secured notes leaving approximately $160 million of committed and available undrawn capacity.

Forward-Looking Statements

This news release contains forward-looking statements and information relating to expected future events and financial and operating results of the Fund, Canexus LP and its subsidiaries, including with respect to the timing of TCP completion, the expenses related thereto and its contribution to operating cash flow, the timing of completion and contribution to operating cash flow of growth projects, including the expansion of NATO. The use of the words "expects", "anticipates", "continue", "estimates", "projects", "should", "believe", "plans", "intends", "may", "will" or similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including market and general economic conditions, future costs, treatment under governmental regulatory, tax and environmental regimes and the other risks and uncertainties detailed under "Risk Factors" in the Fund's Annual Information Form filed on the Fund's SEDAR profile at Management believes the expectations reflected in these forward-looking statements are currently reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Due to the potential impact of these factors, the Fund and Canexus LP disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

About Canexus

Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Our four plants in Canada and one in Brazil are reliable, low-cost, strategically-located facilities that capitalize on competitive electricity costs and transportation infrastructure to minimize production and delivery costs. Canexus also provides fee-for-service hydrocarbon transloading services to the oil and gas industry from its terminal at Bruderheim, Alberta. Canexus targets opportunities to maximize unitholder returns and delivers high-quality products and services to its customers. Canexus units and convertible debentures trade on the Toronto Stock Exchange under the symbol CUS. More information about Canexus is available at

Contact Information

  • Canexus Limited
    Gary Kubera
    President and CEO
    (403) 571-7300
    Canexus Limited
    Richard McLellan
    (403) 571-7300