Canexus Income Fund
TSX : CUS.UN

Canexus Income Fund

April 13, 2006 23:59 ET

Canexus Announces April Cash Distribution and Purchase of Additional Foreign Currency Option Protection

CALGARY, April 13 /CNW/ - Canexus Income Fund (TSX: CUS.UN) (the "Fund")
today announced the cash distribution for the period April 1, 2006 to April
30, 2006, has been set at $0.0729 per unit. The distribution will be paid on
May 15, 2006, to unitholders of record as at April 28, 2006. This payment is
consistent with the Fund's distribution policy.
On April 3, 2006, Canexus purchased additional US dollar foreign exchange
options that will come into effect after the expiry of previously purchased US
dollar options on August 9, 2006. Under the new options contract, Canexus is
entitled to sell US $5 million per month and to acquire Canadian dollars at a
price of US$0.85 per Canadian dollar for the period August 16, 2006, to
January 10, 2007, at a cost of US$696,100, thereby protecting more than half
of its US$9.5 million per month US dollar exposure. The previously purchased
options contract, which commenced in August 2005, protects Canexus's entire US
dollar exposure if the Canadian dollar strengthens above US$0.813, until
August 9, 2006. Before the impact of hedging instruments, every US$0.01
increase in the Canadian/US dollar exchange rate decreases net income before
taxes by $1.5 million Canadian per year. All long-term debt has been borrowed
in US dollars to further mitigate foreign currency exposure. Management
continues to actively manage the Fund's foreign currency risk.

About Canexus
Canexus produces sodium chlorate and chlor-alkali products largely for
the pulp and paper and water treatment industries. Canexus' five plants in
Canada and one plant in Brazil are reliable, low-cost, strategically located
facilities that capitalize on competitive electricity costs and transportation
infrastructure to minimize production and delivery costs. Canexus targets
opportunities to maximize unitholder returns and delivers high-quality
products to its customers. Canexus is listed on the Toronto Stock Exchange
under the symbol CUS.UN. More information about Canexus is available at
www.canexus.ca.
%SEDAR: 00022420E

Contact Information

  • Gary Kubera, President and CEO, Canexus
    Limited, (403) 571-7300; Richard McLellan, CFO, Canexus Limited,
    (403) 571-7300