Arctic Glacier Income Fund

Arctic Glacier Income Fund

September 12, 2011 08:00 ET

CPP Investment Board and West Face Capital Refuse to Extend Covenant Waiver to Arctic Glacier

Second Lien Lenders Issue Notice Of Default Without Accelerating Obligations

WINNIPEG, MANITOBA--(Marketwire - Sept. 12, 2011) - Arctic Glacier Income Fund (TSX:AG.UN) (the "Fund") announced today the Fund's second lien secured lenders, CPPIB Credit Investments Inc. and West Face Capital Inc., have refused to provide a further extension of the period during which they have waived compliance with certain financial covenants under the Fund's credit facilities.

Further, CPPIB Credit Investments Inc. and West Face Capital Inc. have issued a notice of default under those credit facilities but have not accelerated the obligations owing thereunder. The Fund anticipates that the steps taken by the second lien secured lenders may compel the Fund's first lien secured lenders to take similar steps.

The Fund was in breach of financial covenants governing maximum leverage ratio, interest coverage ratio, fixed charge coverage ratio and minimum EBITDA levels under its credit facilities as at June 30, 2011. Subsequent to the end of the quarter, on July 29, 2011, the Fund's secured lenders waived compliance with those covenants for the quarter ended June 30, 2011 until September 9, 2011.

Arctic Glacier is continuing active discussions with its lenders to amend certain terms of the credit agreements for future quarters. However, there can be no assurance that such amendments will be approved.

About Arctic Glacier

Arctic Glacier Income Fund, through its operating company, Arctic Glacier Inc., is a leading producer, marketer and distributor of high-quality packaged ice in North America, primarily under the brand name of Arctic Glacier® Premium Ice. Arctic Glacier operates 39 production plants and 48 distribution facilities across Canada and the northeast, central and western United States servicing more than 75,000 retail locations.

Arctic Glacier Income Fund trust units are listed on the Toronto Stock Exchange under the trading symbol AG.UN. There are currently 350.3 million trust units outstanding.

Forward-Looking Information

This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, and there is no assurance that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as at the date of this news release, and the Fund assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances.

The Toronto Stock Exchange does not approve or disapprove of the adequacy or accuracy of this release.

Contact Information

  • Arctic Glacier Income Fund
    Keith McMahon
    President & CEO
    Toll free investor relations phone: 1-888-573-9237

    Arctic Glacier Income Fund
    Doug Bailey
    Chief Financial Officer
    Toll free investor relations phone: 1-888-573-9237