FP Newspapers Income Fund

FP Newspapers Income Fund

January 19, 2010 17:20 ET

FP Newspapers Income Fund Announces Completion of Refinancing and Monthly Distribution-January 2010

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 19, 2010) - FP Newspapers Income Fund (TSX:FP.UN) is pleased to announce that the refinancing of FP Canadian Newspapers Limited Partnership's ("FPLP") term loan, as described in the Fund's December 16 press release, was completed on January 8, 2010.

The Fund also announced today a distribution of $0.06 per unit for the month of January 2010, to unitholders of record on January 29, 2010. The distribution will be paid February 25, 2010. This distribution level represents a reduction of $0.035 per unit from the previous monthly distribution level. The reduction is primarily the result of FPLP commencing principal amortization payments under its new term loan facility. The Trustees will continue to monitor the financial performance of the operating businesses to determine the appropriate distribution levels.

"While the media industry continues to face uncertain conditions, we have made and will continue to make, a number of changes to improve the efficiency and reduce costs at all our operating businesses," said Ron Stern, Chairman of FP Newspapers Income Fund.

The Fund owns securities entitling it to 49% of the distributable cash of FP Canadian Newspapers Limited Partnership. The Fund's policy is for unitholders of record on the last business day of a calendar month to receive distributions on or before the last day of the following month. Holders of units who are non-residents of Canada will be required to pay all withholding taxes payable in respect of any distributions of income by the Fund.

FP Canadian Newspapers Limited Partnership owns the Winnipeg Free Press, the Brandon Sun, and their related businesses, as well as Canstar Community News, the publisher of seven community and special interest newspapers in the Winnipeg region. The Winnipeg Free Press newspaper publishes seven days a week, serving Winnipeg and Manitoba with an average Monday through Saturday circulation of approximately 129,000 of printed and electronic copies. The Brandon Sun also publishes seven days a week, serving the region with an average circulation of approximately 14,600 copies.

Canstar Community News publishes weekly with an average circulation of approximately 206,000 copies. Based in Winnipeg, the businesses employ approximately 590 people in Winnipeg and Brandon. Further information can be found at www.fpnewspapers.com, and in the disclosure documents filed by FP Newspapers Income Fund with the securities regulatory authorities available at www.sedar.com.

Contact Information

  • FP Newspapers Income Fund
    Daniel Koshowski
    Vice President, Finance and Administration
    (204) 697-7425
    (204) 632-0281 (FAX)