Newport Partners Income Fund Emerges From Forbearance and Announces New Senior Facility

TORONTO, ONTARIO--(Marketwire - March 23, 2011) -

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Newport Partners Income Fund (the "Fund") (TSX:NPF.UN)(TSX:NPF.DB.B)(TSX:NPF.DB.C) is pleased to announce that it, through its borrowing subsidiary, Newport Finance Corp. (the "Borrower") successfully entered into, today, a second amended and restated senior credit agreement (the "New Senior Credit Agreement") with its existing senior lender. As a result of the closing of the New Senior Credit Agreement, the amended and restated forbearance agreement dated December 20, 2011 to which the Newport group was subject has been terminated and, as such, the Borrower is no longer in default under its senior loan facility.

The New Senior Credit Agreement, with total loans outstanding of approximately $106 million, provides, amongst other things, for financial covenants that are better tailored to the Borrower's and its affiliates' existing circumstances, and has undrawn additional commitments in the amount of an additional $10 million which is ear-marked for specific working capital purposes, and approximately $5 million for a potential acquisition by the Newport group.

The successful closing of the New Senior Credit Agreement and the Fund's concurrent emergence from forbearance, together with the successful completion of the exchange transaction announced earlier today, mark the completion of the Fund's debt restructuring efforts. 

A copy of the New Senior Credit Agreement will be available under the Fund's profile at www.sedar.com.

About Newport Partners Income Fund

Newport Partners Income Fund is an unincorporated open-ended trust created to hold, through its investment in Newport Partners Commercial Trust, interests in Newport Private Yield LP, a limited partnership established under the laws of the Province of Ontario. Securities of Newport Partners Income Fund began trading on the TSX on August 8, 2005 under the symbol NPF.UN.

Newport Partners Income Fund is a publicly-traded diversified fund that invests in successful Canadian private businesses. The Fund, currently has $443 million invested in 12 companies representing a diverse cross-section of the Canadian economy. 

Forward-Looking Statements

Certain information included in this news release may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue" or the negative of these terms or other similar expressions concerning matters that are not historical facts. Without limitation, information regarding the closing of the transaction constitutes forward-looking information. Such forward-looking information reflects management's current beliefs and is based on information currently available to management of the Fund and the businesses in which the Fund holds an ownership interest (the "Operating Partnerships"). Forward-looking information involves significant risks and uncertainties. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking information, including risks related to the satisfaction of all closing conditions to the Refinancing and Exchange Transaction, the receipt of all required consents and approvals and the abilities, actions, financial condition and circumstances of other parties to the Refinancing and Exchange Transaction,. These factors should not be considered exhaustive. In addition, in evaluating this information, investors should specifically consider various factors, including the risks outlined in the Fund's public disclosure documents filed on SEDAR at www.sedar.com, which may cause actual events or results to differ materially from any forward-looking statement. In formulating forward-looking information herein, management has assumed that business and economic conditions affecting the Fund and its operating partnerships and the other parties to the exchange transaction will continue substantially in the ordinary course, including without limitation, with respect to general levels of economic activity. Although the forward-looking information is based on what management of the Fund and the Operating Partnerships consider to be reasonable assumptions based on information currently available to it, there can be no assurance that actual events or results will be consistent with this forward-looking information, and management's assumptions may prove to be incorrect. This forward-looking information is made as of the date of this news release, and the Fund does not assume any obligation to update or revise them to reflect new events or circumstances. Undue reliance should not be placed on forward-looking information. The Fund is providing the forward-looking financial information for the purpose of providing investors with some context for the information presented herein. Readers are cautioned that this information may not be appropriate for any other purpose.