Arctic Glacier Income Fund
TSX : AG.UN

Arctic Glacier Income Fund

July 29, 2011 16:20 ET

Arctic Glacier Obtains Waivers From Lenders

WINNIPEG, MANITOBA--(Marketwire - July 29, 2011) - Arctic Glacier Income Fund (TSX:AG.UN) ("the Fund") today announced that the Fund and its subsidiaries, including Arctic Glacier Inc. and Arctic Glacier International Inc. (collectively "Arctic Glacier"), have obtained waivers from their lenders.

The lenders have waived compliance with financial covenants for the quarter ended June 30, 2011 until September 1, 2011, including those governing the maximum leverage ratio, interest coverage ratio, fixed charge coverage ratio and minimum EBITDA levels.

The waivers also permit the Fund to make the final cash interest payment to holders of its 6.50% extendible convertible unsecured subordinated debentures (the "Debentures") and facilitate the previously announced issuance of trust units of the Fund on August 2, 2011 to the Debenture holders in satisfaction of the Fund's obligations to repay the principal amount of the Debentures due July 31, 2011 in lieu of cash. In addition, the waivers permit the Fund to make the first installment payment of US$2.5 million relating to the U.S. Direct Purchaser Class Action settlement on or before August 4, 2011.

Arctic Glacier is continuing active discussions with its lenders to amend certain terms of the credit agreements for future quarters, although there can be no assurance that such amendments will be approved.

The Fund continues to evaluate alternatives as part of the strategic and financing review that is currently in progress.

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 currently 39.0 million trust units outstanding. Following the issuance of units to the Debenture holders on August 2, 2011, there will be 350.3 million trust units outstanding.

Forward-Looking Information

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 including those discussed under the heading "Risk Factors" and elsewhere in the Fund's Annual Information Form and other publicly available disclosure documents, as filed on SEDAR (www.sedar.com). 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
    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