The Consumers' Waterheater Income Fund
TSX : CWI.UN

The Consumers' Waterheater Income Fund
The Consumers' Waterheater Operating Trust

January 27, 2010 16:45 ET

The Consumers' Waterheater Income Fund and The Consumers' Waterheater Operating Trust Announce Drawdown Under Bridge Facility for Refinancing of Series 2003-1 A-2 Notes

TORONTO, ONTARIO--(Marketwire - Jan. 27, 2010) - The Consumers' Waterheater Income Fund ("Fund") (TSX:CWI.UN) and The Consumers' Waterheater Operating Trust ("Trust") today announced that the Trust has drawn down fully on its previously announced $240 million bridge facility ("Bridge") and $12.5 million of its $35 million revolving facility ("New Revolver"), for a total amount of $252.5 million. The proceeds will be used by the Trust to repay in full the amount outstanding on its 'AAA' rated $225 million 5.245% Series 2003-1 A-2 Secured Notes ("Series 2 Notes") on January 28, 2010 (their expected final payment date), including interest, and a portion of its existing revolver. The balance of the existing revolver will be repaid by the Trust from cash on hand. Funds drawn will initially bear interest at the rate of approximately 3% per annum.

In conjunction with this refinancing, the Trust has provided notice to the trustee and rating agencies of its Series 2009-1 and 2 Notes that the Trust intends to effect the release of security and enter into a replacement indenture in accordance with the terms of those notes. It is expected that the "Release Date" will occur on or about January 28, 2010.

"This is an important milestone for us," said Steve Bower, CFO. "The repayment of the Trust's Series 2 Notes completes our plan to move from secured to senior debt, with the resulting additional flexibility in managing our business going forward."

About The Consumers' Waterheater Income Fund

The Fund owns a portfolio of approximately 1.3 million installed water heaters and other assets, rented primarily to residential customers in Ontario. The Fund also owns Stratacon Inc., a leading "smart" sub-metering company, with metering contracts for condominium and apartment suites in Ontario, Alberta and elsewhere in Canada.

Additional information regarding the Fund, including its current Annual Information Form is available on SEDAR at www.sedar.com. Additional information on the sub-metering business is available at www.stratacon.ca.

Contact Information

  • The Consumers' Waterheater Income Fund and
    The Consumers' Waterheater Operating Trust
    R. Stephen Bower, FCA, CFO
    905.943.6292 or 1.877.877.0142