EVEREADY INCOME FUND
TSX : EIS.UN

EVEREADY INCOME FUND

July 15, 2008 08:00 ET

Eveready Income Fund Announces 2008 Q2 Distribution Payment Information

EDMONTON, ALBERTA--(Marketwire - July 15, 2008) - Eveready Income Fund ("Eveready") (TSX:EIS.UN) previously announced that the board of trustees of Eveready has declared an "in-kind" distribution of $0.18 per unit for the second quarter of 2008 ($0.72 per unit on an annualized basis). The "in-kind" distribution of 4,130,960 units was issued today to unitholders of record as of the close of business on June 30, 2008. The units were issued at a deemed price of $3.8862 per unit. There are currently 93,526,320 units and exchangeable securities outstanding of Eveready.

This quarterly "in kind" distribution is Eveready's second distribution since announcing in January 2008 that it had amended its distribution policy to maximize the retention of operating cash flow to re-invest in growth. Eveready has replaced its former monthly cash distribution of $0.06 per unit ($0.72 per unit on an annualized basis) with a quarterly "in-kind" distribution of $0.18 per unit ($0.72 per unit on an annualized basis).

Investors are cautioned that quarterly distributions are always subject to approval of Eveready's board of trustees and may be increased, decreased or suspended by the board of trustees at any time. Also, at the discretion of Eveready's board of trustees, quarterly distributions may be payable in cash and/or via the distribution of "in-kind" units.

Adjustment to the Conversion Price of the Debentures

Eveready currently has an aggregate principal amount of $50,000,000 of 7% convertible unsecured subordinated debentures ("Debentures") outstanding. The Debentures trade on the Toronto Stock Exchange under the symbol "EIS.DB". The Debentures are convertible, at the holder's option, into units of Eveready. The conversion price for the Debentures prior to the second quarter distribution was $8.1090 per unit (the "Conversion Price"). However, the Conversion Price is subject to adjustment upon the occurrence of certain events including events such as an "in-kind" distribution of units. The purpose of the adjustment is to prevent dilution to the holders of Debentures arising from such events. As a result of the above "in-kind" distribution, the Conversion Price has been adjusted to $7.7508 per unit.

About Eveready

Eveready is a growth oriented income fund that provides industrial and oilfield maintenance and production services to the energy, resource, and industrial sectors. Operating from over 75 locations in Canada, the United States, and internationally, Eveready currently employs over 2,500 employees and operates a service fleet of over 1,000 trucks. Eveready is a leading provider of infrastructure services in Alberta's fast growing oil sands sector. The units of Eveready trade on the Toronto Stock Exchange under the trading symbol "EIS.UN".

Contact Information

  • Eveready Income Fund
    Rod Marlin
    President & CEO
    (780) 451-6075
    (780) 451-2142 (FAX)
    or
    Eveready Income Fund
    Jason Vandenberg
    CFO
    (780) 451-6075
    (780) 451-2142 (FAX)
    Website: www.evereadyincomefund.com