Cineplex Galaxy Income Fund
TSX : CGX.UN

Cineplex Galaxy Income Fund
Onex Corporation
TSX : OCX

Onex Corporation

April 21, 2009 08:38 ET

Cineplex Galaxy Income Fund and Onex Corporation Announce Completion of Secondary Offering of Trust Units

TORONTO, ONTARIO--(Marketwire - April 21, 2009) -

NOT FOR RELEASE OVER US NEWSWIRE SERVICES OR DISSEMINATION IN THE US.

Cineplex Galaxy Income Fund (TSX:CGX.UN) (the "Fund") and Onex Corporation ("Onex") (TSX:OCX) are pleased to announce that they have completed their previously announced bought deal offering of 12,956,885 trust units, representing units owned or controlled by Onex. The trust units were sold to a syndicate of underwriters at a price of $14.25 per trust unit, representing gross proceeds of approximately $184.6 million. The Fund will not receive any portion of the gross proceeds.

The syndicate of underwriters was led by RBC Capital Markets, National Bank Financial Inc. and Scotia Capital Inc. and included Thomas Weisel Partners Canada Inc., GMP Securities L.P. and UBS Securities Canada Inc.

The first cash distribution in which purchasers of the trust units offered will be eligible to participate will be for the month of April with a record date of April 30, 2009, which is expected to be payable on or about May 29, 2009.

The units will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States to any person absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the units in the United States.

About Cineplex Entertainment LP:

As the largest motion picture exhibitor in Canada, Cineplex Entertainment LP owns, leases or has a joint-venture interest in 130 theatres with 1,328 screens serving more than 63.5 million guests annually. Headquartered in Toronto, Canada, Cineplex Entertainment operates theatres from British Columbia to Quebec and is the largest exhibitor of digital, 3D and IMAX projection technologies in the country. Proudly Canadian and with a workforce of more than 9,000, the company operates the following top tier brands: Cineplex Odeon, Galaxy, Famous Players, Colossus, Coliseum, SilverCity, Cinema City and Scotiabank Theatres. The units of Cineplex Galaxy Income Fund, which owns approximately 98% of Cineplex Entertainment LP, are traded on the Toronto Stock Exchange (symbol CGX.UN). For more information, visit www.cineplex.com.

Further information can be found in the disclosure documents filed by Cineplex Galaxy Income Fund with the securities regulatory authorities, available at www.sedar.com.

About Onex:

Onex is one of North America's oldest and most successful private equity firms. Onex makes private equity investments through the Onex Partners and ONCAP families of Funds. Onex also manages investment platforms focused on Real Estate and Credit Securities. In total, Onex manages approximately US$11 billion. Onex generates annual management fee income and is entitled to a carried interest on approximately US$7 billion of third-party capital, and also invests its own capital directly and as a substantial Limited Partner in its Funds.

Onex' businesses generate annual revenues of $36 billion, have assets of $45 billion and employ 233,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.onex.com. The company's security filings can also be accessed at www.sedar.com.

FORWARD LOOKING STATEMENTS

Certain statements in this news release are "forward-looking statements", which reflect management's expectations regarding the offering (including the use of proceeds therefrom), and the amount and timing of the payment of distributions of the Fund. All statements other than statements of historical fact contained in this news release are forward-looking statements. Such forward-looking statements involve risks and uncertainties, as they reflect management's current beliefs and are based on information currently available to management. Actual results may differ materially from those anticipated in the statements made. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements are made as of the date of this news release and the Fund assumes no obligation to update or revise them to reflect new events or circumstances except as expressly required by applicable securities law. Further information regarding the uncertainties and risks can be found in the disclosure documents filed by the Fund with the securities regulatory authorities, available at www.sedar.com.

Contact Information

  • Cineplex Entertainment Corporation
    Gord Nelson
    Chief Financial Officer
    (416) 323-6602
    or
    Cineplex Entertainment Corporation
    Pat Marshall
    Vice President Communications and Investor Relations
    (416) 323-6648
    www.cineplex.com
    or
    Onex Corporation
    Anthony Munk
    Managing Director
    (212) 582-2211
    or
    Onex Corporation
    Tim Duncanson
    Managing Director
    (416) 362-7711
    www.onex.com