Rogers Sugar Income Fund
TSX : RSI.UN

Rogers Sugar Income Fund

December 03, 2009 07:30 ET

Rogers Sugar Income Fund Receives Toronto Stock Exchange Approval for Normal Course Issuer Bid

MONTREAL, QUEBEC--(Marketwire - Dec. 3, 2009) - THIS MEDIA RELEASE IS NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Rogers Sugar Income Fund (the "Fund") (TSX:RSI.UN) announced today that it has received approval from Toronto Stock Exchange to proceed with a normal course issuer bid to purchase up to 6,345,898 trust units (the "Units") of the Fund, representing 10% of the public float of the Fund, up to $2,000,000 principal amount of Second Series 6.00% Convertible Unsecured Subordinated Debentures of the Fund (the "Second Series Debentures") and up to $3,000,000 principal amount of Third Series 5.90% Convertible Unsecured Subordinated Debentures of the Fund (the "Third Series Debentures" and, together with the Second Series Debentures, collectively, the "Debentures"), representing 4% and 3.56% respectively of the issued and outstanding Debentures. The average daily trading volume for the six calendar months preceding December 1, 2009 is 116,846 Units, $34,063 principal amount of Second Series Debentures and $64,646 principal amount of Third Series Debentures. In accordance with TSX rules, the Fund may repurchase on a daily basis 25% of the average, representing a maximum of 29,211Units, $8,516 principal amount of Second Series Debentures and $16,161 principal amount of Third Series Debentures. The bid will start on December 7, 2009, and may continue to December 6, 2010. The Units and the Debentures will be purchased on behalf of the Fund by a registered broker through the facilities of TSX. The price paid for the Units and the Debentures will be the market price at the time of acquisition, and the number of Units and Debentures purchased and the timing of any such purchases will be determined by the Fund. All Units and Debentures purchased by the Fund will be cancelled.

The Fund currently has 87,327,887 Units, $50,000,000 principal amount of Second Series Debentures and $84,260,000 principal amount of Third Series Debentures outstanding. During the past 12 months, 200,000 Units were purchased by the Fund at a weighted average price of $2.92, and no Debentures were purchased by the Fund.

The Fund believes that its Units and Debentures may trade in price ranges which do not fully reflect the value of the Units and the Debentures. As a result, the Fund believes that the purchase of its outstanding Units and Debentures may represent an appropriate use of its funds.

About Rogers Sugar Income Fund

The Fund is an open-ended, limited purpose trust established under the laws of the Province of Ontario. The Fund holds all of the common shares of Lantic Inc. Lantic Inc. operates cane sugar refineries in Montreal, Quebec and Vancouver, British Columbia, as well as the only Canadian sugar beet processing facility in Taber, Alberta. Lantic Inc.'s sugar products are marketed under the "Lantic" trademark in Eastern Canada, and the "Rogers" trademark in Western Canada, and include granulated, icing, cube, yellow and brown sugars, liquid sugars and specialty syrups.

Contact Information

  • Rogers Sugar Ltd.
    Mr. Daniel L. Lafrance
    Senior Vice-President Finance and CFO of Lantic Inc.
    Administrator of Rogers Sugar Income Fund
    514-940-4350