Canexus Income Fund
TSX : CUS.UN

Canexus Income Fund

May 02, 2008 12:54 ET

Canexus Announces Closing of Financings

CALGARY, ALBERTA--(Marketwire - May 2, 2008) - Canexus Income Fund (TSX:CUS.UN) (the "Fund") today announced the closing of two financing agreements.

As at March 31, 2008, Canexus Limited Partnership ("Canexus LP") had borrowings of approximately $231 million under its existing $350-million senior secured revolving credit facility. Effective May 1, 2008, our committed financing has been increased to approximately $480 million and is comprised of the facilities described below:

- Amended and Restated $410-million senior secured revolving credit facility with a syndicate of financial institutions that matures on August 18, 2011. This credit facility is extendible annually for additional one-year terms with the approval of the lenders. It can also be expanded to $430 million with additional participation in the credit facility.

- Note Purchase and Revolving Credit Agreement for US $50 million of 6.57 per cent senior secured notes due May 1, 2013, and a US $20-million senior secured revolving credit facility that matures on August 18, 2011. The US $20-million senior secured revolving credit facility is extendible annually for additional one year terms with the approval of the lender.

Security for all facilities ranks equally and financial covenants are relaxed through to and including December 31, 2010, to accommodate the technology conversion project (TCP) at our North Vancouver chlor-alkali facility.

Proceeds from these facilities are available for general corporate and partnership purposes, including capital expenditures and acquisitions and the construction and completion of TCP.

"We are delighted with the strong support for Canexus from our lenders," said Gary Kubera, President and CEO. "Our credit facilities, combined with the significant participation by Nexen and other unitholders in our Distribution Reinvestment Plan (DRIP), solidify our TCP financing plan."

About Canexus

Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Our five plants in Canada and one 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.

Contact Information

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