Canexus Income Fund
TSX : CUS.UN

Canexus Income Fund

September 05, 2007 07:30 ET

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

CALGARY, ALBERTA--(Marketwire - Sept. 5, 2007) - Canexus Income Fund (TSX:CUS.UN) (the "Fund") today announced the cash distribution for the period September 1, 2007, to September 30, 2007, has been set at $0.0729 per unit. The distribution will be paid on October 15, 2007, to unitholders of record as at September 28, 2007. This payment is consistent with the Fund's distribution policy.

On August 15, 2007, 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$0.9497 per Canadian dollar from September 5, 2007, through to February 27, 2008. These options are designed to protect our cash flow if the Canadian dollar strengthens while 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 our net US dollar cash flow per month through February 27, 2008. All long-term debt is denominated 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

  • Canexus Limited
    Gary Kubera
    President and CEO
    (403) 571-7300
    or
    Canexus Limited
    Richard McLellan
    CFO
    (403) 571-7300
    Website: www.canexus.ca