Arctic Glacier Income Fund
TSX : AG.UN

Arctic Glacier Income Fund

July 26, 2011 09:02 ET

Arctic Glacier Announces Terms of Issuance of Units To Convertible Debenture Holders

WINNIPEG, MANITOBA--(Marketwire - July 26, 2011) - Arctic Glacier Income Fund (TSX:AG.UN) (the "Fund") today announced the terms for the issuance of trust units ("Units") of the Fund to the holders ("Debenture holders") of its 6.50% extendible convertible unsecured subordinated debentures (the "Debentures").

The Fund had previously announced on June 30, 2011 its intention to issue Units to Debenture holders to satisfy its obligations to repay the $90.6 million principal amount of the Debentures outstanding on the maturity date of July 31, 2011 in lieu of cash, in accordance with the terms of the trust indenture for the Debentures (the "Indenture").

The number of Units to be issued to Debenture holders was determined by dividing the principal amount of the Debentures outstanding by 95% of the volume-weighted average trading price per Unit on the Toronto Stock Exchange (the "TSX") for the 20 consecutive trading days ending five days prior to the date of maturity (the "Current Market Price"). Based on the maturity date of July 31, 2011, the 20-day period commenced on and included June 27, 2011 and ended on and included July 25, 2011.

Based on information available from the TSX website, during this period an aggregate of 11,580,984 Units were sold at an aggregate sale price of $3,548,181. As a result, the Current Market Price was determined to be approximately $0.3064 (rounded), and Units will be issued to Debenture holders at a notional conversion price per Unit of approximately $0.2911 (rounded) (95% of the Current Market Price). Based on $90.6 million principal amount of Debentures outstanding, approximately 311,275,007 Units will be issued to Debenture holders. However, the Fund will not issue fractional Units on maturity but instead will satisfy fractional interest by a cash payment equal to the Current Market Price of any fractional interest, which may alter the total number of Units issued.

Units will be issued and delivered to Debenture holders on August 2, 2011, the first business day after the maturity date. The Units will be freely tradable in Canada and will not be subject to any resale restrictions under applicable Canadian securities legislation or the rules of the TSX. The issuance of the Units is subject to receipt of all necessary third party and regulatory approvals, including the approval of the TSX and the Fund's senior lenders on certain issues.

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 Information

This news release contains statements that constitute forward-looking information within the meaning of applicable securities legislation. This forward-looking information includes, without limitation, statements regarding the issuance and delivery of the Units and the timing thereof. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by the Fund and described in the forward-looking information contained in this news release. Undue reliance should not be placed on forward-looking information, which are not a guarantee of performance and are subject to a number of risks and uncertainties. The issuance of the Units is subject to receipt of all necessary third party and regulatory approvals, including the approval of the TSX and the Fund's senior lenders on certain issues. There is no guarantee that such approvals will be received in a timely fashion or at all. Readers are cautioned that the foregoing list of risk factors is not exhaustive. Forward-looking information is based on the estimates and opinions of the Fund's management at the time the information is released and the Fund disclaims any intent or obligation to update publicly and such forward-looking information, whether as a result of new information, future events or otherwise, other than as expressly requested by applicable securities laws.

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
    Toll free investor relations phone: 1-888-573-9237

    Arctic Glacier Income Fund
    Doug Bailey
    Chief Financial Officer
    Toll free investor relations phone: 1-888-573-9237
    www.arcticglacier.com