COLABOR INCOME FUND
TSX : CLB.UN

COLABOR INCOME FUND

January 04, 2007 09:22 ET

Colabor Income Fund Announces the Closing of its Offering of $25 Million Subscription Receipt and $50 Million Debentures

BOUCHERVILLE, QUEBEC--(CCNMatthews - Jan. 4, 2007) - NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Colabor Income Fund (TSX:CLB.UN) (the "Fund") is pleased to announce today that it has successfully completed its previously-announced offering (the "Offering") of 2,825,000 subscription receipts at a price of $8.85 per subscription receipt and $50 million aggregate principal amount of 7.0% extendible convertible unsecured subordinated debentures for aggregate gross proceeds of $75 million.

The net proceeds from the Offering, being approximately $71.75 million, will be used by Colabor Limited Partnership to partially fund the previously-announced acquisition of the assets of Summit Food Service Distributors Inc. (the "Summit Acquisition"), one of Canada's largest distributors to the foodservice, for $115 million.

The Offering was underwritten on a bought deal basis by a syndicate led by National Bank Financial Inc. and Scotia Capital Inc. and including Canaccord Capital Corporation, Desjardins Securities Inc. and HSBC Securities (Canada) Inc. Provided that the Summit Acquisition is completed, holders of subscription receipts will be entitled to receive, for no additional consideration, one unit of the Fund on the closing of the Summit Acquisition and cash distributions as if they had been holders of units as of January 4, 2007. Closing of the Summit Acquisition is expected to occur on or about January 8, 2007.

The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States 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 securities in any State in which such offer, solicitation or sale would be unlawful.

About Colabor Income Fund

Colabor is a wholesaler of food and non-food products that it purchases and supplies to wholesale distributors who, in turn, sell them to their retail (grocery stores, convenience stores, etc.) and food-service customers (cafeterias, restaurants, hotels, restaurant chains, etc.). Colabor is one of the largest wholesalers in Canada and the largest in Quebec, with net sales of $399.2 million for the twelve-month period ended September 8, 2006.

Forward-looking Statements

This news release may contain forward-looking statements reflecting the opinions or present expectations of Colabor Income Fund or Colabor Limited Partnership concerning their performance as well as their respective business activities and future events. These statements are subject to a number of risks, uncertainties and assumptions. Actual results or events may differ.

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

Contact Information

  • Colabor Income Fund
    Mr. Gilles C. Lachance
    President and Chief Executive Officer
    450-449-0026 ext. 265
    or
    Colabor Income Fund
    Mr. Michel Loignon, CA
    Vice-President Finance & Administration
    450-449-0026 ext. 235