Canexus Income Fund
TSX : CUS.UN

Canexus Income Fund

December 08, 2006 23:59 ET

Canexus Announces Purchase of Additional Foreign Exchange Option Protection and December Cash Distribution

CALGARY--(CCNMatthews - Dec. 8) - Canexus Income Fund (TSX: CUS.UN) (the "Fund") today announced the cash distribution for the period December 1, 2006 to December 31, 2006, has been set at $0.0729 per unit. The distribution will be paid on January 15, 2007, to unitholders of record as at December 29, 2006. This payment is consistent with the Fund's distribution policy.

On December 6, 2006, Canexus acquired foreign exchange call options on US $5.0 million per month which entitles us to sell US dollars and acquire Canadian dollars at a price of US $0.87 per Canadian dollar from January 17, 2007 through to July 11, 2007 at a cost of $632,000. These options are designed to protect our cash flows if the Canadian dollar strengthens while still allowing our cash flow to benefit from any devaluation of the Canadian dollar relative to the US dollar. This new call option program protects more than half of our net US dollar cash flow per month through July 11, 2007. All long-term debt is denominated in US dollars and we continue to take advantage of opportunities to purchase materials and equipment for our Brandon expansion in US dollars to further manage 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.

Contact Information

  • Gary Kubera
    President and CEO
    Canexus Limited
    (403) 571-7300

    Richard McLellan
    CFO
    Canexus Limited
    (403) 571-7300