Newalta Income Fund

Newalta Income Fund

October 22, 2007 17:05 ET

Newalta Income Fund Announces $100 Million Offering of Convertible Unsecured Subordinated Debentures

CALGARY, ALBERTA--(Marketwire - Oct. 22, 2007) -


Newalta Income Fund ("Newalta") (TSX:NAL.UN) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by CIBC World Markets Inc. as the sole bookrunner, and co-led by RBC Capital Markets, to issue $100,000,000 principal amount of Convertible Unsecured Subordinated Debentures (the "Debentures") on a bought deal basis.

The Debentures will bear an interest rate of 7.0% per annum, payable semi-annually in arrears on May 31 and November 30 each year commencing May 31, 2008. The Debentures will mature on November 30, 2012.

The Debentures will be convertible at any time at the option of the holders into trust units ("Trust Units") of Newalta at a conversion rate of approximately 43.4783 Trust Units per $1,000 principal amount of Debentures, which is equal to a conversion price of $23.00 per Trust Unit. After November 30, 2010 and on or before November 30, 2011, Newalta will have the right to redeem all or a portion of the Debentures equal to the principal amount plus accrued and unpaid interest, provided that the market price of the Trust Units on the date on which the notice of redemption is given is not less than 125% of the conversion price. After November 30, 2011, Newalta will have the right to redeem all or a portion of the Debentures equal to the principal amount plus accrued and unpaid interest. Newalta will, in certain circumstances, have the right to repay the principal outstanding under the Debentures through the issuance of Trust Units.

The Debentures will be offered in each of the provinces of Alberta, British Columbia, Manitoba, Ontario and Quebec, through a short form prospectus, and via private placement in the United States under Rule 144A. Closing of the offering is expected to occur on or about November 16, 2007, subject to satisfaction of customary conditions including receipt of all necessary regulatory approvals.

The net proceeds from the sale of the Convertible Debentures will be used to pay down outstanding indebtedness borrowed to fund acquisitions and growth capital expenditures in 2007.

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

About Newalta Income Fund

Newalta Income Fund is the largest Canadian industrial waste management and environmental services provider and focuses on maximizing the value inherent in industrial waste through the recovery of saleable products and recycling. It also provides environmentally sound disposal of solid, non-hazardous industrial waste. With talented people and a national network of facilities, Newalta serves customers in the automotive, forestry, manufacturing, mining, oil and gas, petrochemical, pulp and paper, steel and transportation service industries. Providing solid investor returns, exceptional customer service, safe operations and environmental stewardship has enabled Newalta to expand into new service sectors and geographic markets. Newalta Income Fund's units trade on the TSX as NAL.UN. For more information, visit

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated closing date of the offering and the anticipated use of the net proceeds of the offering. Although Newalta believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Newalta can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.

The closing of the offering could be delayed if Newalta is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the offering will not be completed within the anticipated time or at all.

The intended use of the net proceeds of the offering by Newalta might change if the board of trustees of Newalta of the board of directors of Newalta Corporation, the administrator of Newalta, determines that it would be in the best interests of Newalta to deploy the proceeds for some other purpose.

The forward-looking statements contained in this press release are made as of the date hereof and Newalta undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information

  • Newalta Income Fund
    Anne M. MacMicken
    Director, Investor Relations
    (403) 806-7019
    Newalta Income Fund
    Ronald L. Sifton
    Executive Vice President and Chief Financial Officer
    (403) 806-7020