Great Lakes Carbon Income Fund

August 15, 2005 16:04 ET

Great Lakes Carbon Income Fund Confirms Agreement With BMO Nesbitt Burns Inc. for New Issue

TORONTO, ONTARIO--(CCNMatthews - Aug. 15, 2005) -

Not for distribution to U.S. news wire services or dissemination in the United States.

Great Lakes Carbon Income Fund (the "Fund") (TSX:GLC.UN) today announced that it has entered into an agreement with BMO Nesbitt Burns Inc., on behalf of a syndicate of underwriters, to sell, on a bought deal basis, 14,250,000 trust units ("Units") of the Fund at an offering price of $12.50 per Unit, representing aggregate proceeds to the Fund of $178,125,000 (the "Offering"). The Offering is expected to close on or about August 31, 2005.

The Fund will use the proceeds from the Offering to indirectly acquire 14,250,000 stapled interest units (consisting of one share of GLC Carbon USA Inc. and a 16% promissory note issued by GLC Securityholder LLC in the amount of Cdn$6.86) currently held by certain affiliates of American Industrial Partners, including AIP/GLC Holdings, LLC and HY Investment Company, LLC (collectively, the "AIP Entities"). Through this acquisition of securities, the Fund's ownership interest in Great Lakes Carbon LLC (the "Company") will increase from 45.74% to 73.56%.

About the Fund:

The Fund is a trust established to hold indirectly the securities of the Company. The Fund currently holds an indirect 45.74% interest in the Company (excluding the interest to be acquired from the AIP Entities). The Company is the world's largest producer of both anode and industrial grade calcined petroleum coke ("CPC"). Anode grade CPC is used in the production of aluminum. Industrial grade CPC is used in the production of other industrial materials including titanium dioxide. The Company produces CPC at its facilities located in Port Arthur, Texas; Enid, Oklahoma; Baton Rouge, Louisiana; and La Plata, Argentina.

The Units 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 press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Units in any State in which such offer, solicitation or sale would be unlawful.

Contact Information

  • Great Lakes Carbon LLC
    Ronald J. Statile
    Senior Vice President and Chief Financial Officer
    (212) 370-5770