GRANBY INDUSTRIES INCOME FUND
TSX : GBY.UN

GRANBY INDUSTRIES INCOME FUND

December 14, 2006 12:55 ET

Granby Industries Income Fund Announces Amendment to Credit Agreement

GRANBY, QUEBEC--(CCNMatthews - Dec. 14, 2006) - Granby Industries Income Fund (TSX:GBY.UN) ("the Fund") announced today that it has reached an agreement with its lenders to amend its existing credit facilities. The amendment will provide for a number of significant changes to the credit facility, including:

- an extension of the maturity date for the $18 million term loan facility from December 16, 2006 to January 31, 2008;

- term loan repayments of $3.6 million in aggregate for the year ending December 31, 2007;

- a reduction in the borrowing limit on the revolving credit facility from $12 million to $10 million; and

- an amendment to the Fixed Charge Coverage Ratio that has the effect of restricting the amount of distributions which amount is primarily dependent on EBITDA(i) performance.

"We are pleased that our lenders have again demonstrated their confidence in Granby and in our business model. This latest renewal evidences the strong relationship we maintain with our lenders," said Paul Antoniadis, Chief Financial Officer of the Fund.

Management believes that the amendments to the credit agreement will provide the Fund with flexibility in meeting its debt covenants without inhibiting the operation of the business.

A copy of the amendment to the credit agreement will be available on www.sedar.com.

About Granby Industries Income Fund

Granby Industries Income Fund is an open-ended, limited purpose trust established under the laws of the Province of Ontario, which indirectly holds an 80 % interest in Granby Industries Limited Partnership ("Granby"). Granby is a leading North American manufacturer of high quality tanks for the residential and light commercial storage of heating oil and other petroleum-based products and is also a leading manufacturer of coated copper tubing. Granby has been operating in the heating oil storage tank industry for more than 50 years and its primary business is manufacturing replacement residential tanks with operations in Granby, Quebec and Oakville, Ontario.

(i) Non-GAAP Measure

References in this press release to the term "EBITDA" are to earnings before non-controlling interest, amortization, interest expense and restructuring costs. EBITDA is not a recognized measure under GAAP in Canada and may not be comparable to similar measures used by other companies. The Fund believes that EBITDA is a useful supplementary measure of operating performance as it provides investors with an indication of cash available for distributions prior to debt service and maintenance capital expenditures. Investors are cautioned, however, that EBITDA should not replace net earnings or loss as an indicator of the Fund's performance, or cash flows from operating, investing and financing activities as a measure of the Fund's liquidity and cash flows. It is not intended to be representative of cash flow from operating activities or results from operations determined in accordance with GAAP or cash available for distribution.

Forward-Looking Statements

This press release may contain forward-looking statements, which reflect management's expectations regarding the Fund's future growth, results of operations, performance, business prospects and opportunities. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Many factors could cause results to differ materially from the results discussed in the forward-looking statements, including risks related to dependence on key suppliers, economic conditions, competition, regulatory change, foreign exchange rates and interest rates, among others. Although the forward-looking statements are based on what management believes to be reasonable assumptions, the Fund cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release and accordingly, the Fund assumes no obligation to update or revise them to reflect new events or circumstances.

Contact Information

  • Granby Industries Income Fund
    Mr. Paul Antoniadis CA
    Vice President, Finance & CFO
    450-378-2334 ext. 225