Arctic Glacier Income Fund

Arctic Glacier Income Fund

March 31, 2011 07:05 ET

Arctic Glacier Amends Terms of Credit Facilities and Unlisted Warrants

WINNIPEG, MANITOBA--(Marketwire - March 31, 2011) - Arctic Glacier Income Fund (TSX:AG.UN) today announced it has reached an agreement with its lenders to amend certain terms of the Fund's credit agreements and unlisted warrants.

The Fund's lenders agreed to change credit terms, including leverage and minimum EBITDA covenants, in order to increase available liquidity on the revolving credit facility and provide improved financial flexibility. The amendments enable the Fund to enter into settlement agreements of class action lawsuits, including the action involving U.S. direct purchasers of packaged ice that was settled on March 30, 2011.

In connection with these amendments, the Fund's term loan lenders, affiliates of CPPIB Credit Investments Inc. and West Face Capital Inc., increased the payment-in-kind interest on the term loan by 1% and the cost of the prepayment option by 3%. They also required the Fund to amend the exercise price of 3.0 million unlisted warrants that were previously issued to them, where each such warrant entitled the holder to acquire one unit of the Fund at any time prior to February 9, 2014 at an exercise price of C$4.00 per unit.

The effective date of the amended warrant exercise price shall be 10 business days from today. The warrant exercise price has been amended to be the lesser of (i) C$1.60 per unit and (ii) an amount calculated as a 20% premium to the volume-weighted average price of units traded on the Toronto Stock Exchange ("TSX") during the five consecutive trading days ending on the fifth trading day following the effective date of the warrant amendment, provided that the exercise price per warrant shall not be less than the volume weighted average price at which the units have traded on the TSX during the five consecutive trading days ending on the date prior to March 30, 2011. All other material terms of the unlisted warrants remain the same.

The Fund's revolving term credit facility lenders also amended the terms of that credit agreement to provide consent for the Fund's subsidiary to enter into class action settlement agreements and providing for similar covenant amendments.

About Arctic Glacier

Arctic Glacier Income Fund, through its operating company, Arctic Glacier Inc., is a leading producer, marketer and distributor of high-quality packaged ice in North America, primarily under the brand name of Arctic Glacier® Premium Ice. Arctic Glacier operates 39 production plants and 48 distribution facilities across Canada and the northeast, central and western United States servicing more than 75,000 retail locations.

Arctic Glacier Income Fund trust units are listed on the Toronto Stock Exchange under the trading symbol AG.UN. There are 39.0 million trust units outstanding.

Forward-Looking Statements

This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, and there is no assurance that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as at the date of this news release, and the Fund assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances.

The Toronto Stock Exchange does not approve or disapprove of the adequacy or accuracy of this release.

Contact Information

  • Arctic Glacier Income Fund
    Keith McMahon
    President & CEO
    Arctic Glacier Income Fund
    Doug Bailey
    Chief Financial Officer
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