Arctic Glacier Income Fund
CNSX : AG.UN

Arctic Glacier Income Fund

April 12, 2012 09:37 ET

Arctic Glacier Income Fund Provides Update on Sale and Investor Solicitation Process

Strong Interest Prompts Special Committee to Authorize Commencement of Phase II

WINNIPEG, MANITOBA--(Marketwire - April 12, 2012) - Arctic Glacier Income Fund (CNSX:AG.UN) ("Arctic Glacier" or the "Fund") announced today that a special committee of its board of trustees (the "Special Committee") has authorized commencement of Phase II of the Sale and Investor Solicitation Process ("SISP").

During Phase I of the SISP, Arctic Glacier's financial advisor, TD Securities Inc. ("TD Securities") solicited and received non-binding letters of intent ("LOIs") from several interested parties to acquire or to invest in Arctic Glacier. Alvarez & Marsal Canada Inc, (the "Monitor"), in consultation with TD Securities, the Chief Process Supervisor and Arctic Glacier, determined that multiple LOIs were qualified for inclusion in Phase II. As a result, TD Securities and the Monitor recommended that the Special Committee authorize the commencement of Phase II of the SISP.

Arctic Glacier, with the assistance of TD Securities, will now make additional information available to parties invited to Phase II and will then seek submission of binding proposals regarding a transaction with the Fund. Phase II is expected to require a period of several weeks to complete and there can be no assurance that any transaction may occur.

"We are very pleased with the level of interest that surfaced in Phase I," said Keith McMahon, President and CEO of Arctic Glacier. "We received indications of interest from a large group of prospective acquirers and investors, and are optimistic about Phase II of the process. We will continue to work with these parties and expect to conclude a transaction for the benefit of all Arctic Glacier stakeholders."

Commenting on today's news release from Reddy Ice Holdings, Inc. ("Reddy Ice") in connection with their U.S. Chapter 11 bankruptcy proceedings and interest in a combination with Arctic Glacier, Mr. McMahon said, "We have received a non-binding letter of intent from Reddy Ice. Reddy Ice is one of many parties that have expressed interest in our process and from whom a non-binding letter of intent was received. We do not intend to disclose the identities of any of our Phase II participants."

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 47 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 Canadian National Stock Exchange under the trading symbol AG.UN. There are 350.3 million trust units outstanding.

Forward-Looking Information

Certain matters set forth in this news release, including statements with respect to the SISP are forward looking. These forward-looking statements reflect management's current views and are based on certain assumptions including assumptions as to future operating conditions and courses of action, the Phase II process participants, the LOIs, sale or recapitalization alternatives, economic conditions and other factors management believes are appropriate. Such forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in these statements, including the risk that sale or recapitalization alternatives may not be available to Arctic Glacier or may not be available on terms favourable to Arctic Glacier and its security holders or that any such sale would yield proceeds sufficient for any distribution to Arctic Glacier's unitholders, as well as those risks and uncertainties identified under the heading "Risks Management" in Arctic Glacier's management's discussion and analysis for the year ended December 31, 2011, available at www.sedar.com. 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.

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