Newport Partners Income Fund
TSX : NPF.UN
TSX : NPF.DB
TSX : NPF.DBA

Newport Partners Income Fund

June 11, 2009 09:21 ET

Newport Partners Income Fund Unlikely to Make Interest Payment Due June 30, 2009 on Subordinated Unsecured Convertible Debentures

TORONTO, ONTARIO--(Marketwire - June 11, 2009) -

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Newport Partners Income Fund ("NPF" or the "Fund") (TSX:NPF.UN) announced today that it is unlikely to be in a position to make the interest payment due on June 30, 2009 on its Subordinated Unsecured Convertible Debentures (the "Debentures")(TSX:NPF.DB)(TSX:NPF.DBA).

As previously announced, the Fund is currently in default under its senior secured credit facility ("Senior Debt facility") with a syndicate of lenders (the "lenders"). The Fund's aggregate indebtedness under the Senior Debt facility is approximately $242 million, comprised of a $210 million term loan and $32 million drawn on a revolving credit facility. The aggregate principal amount of the Debentures is approximately $164.5 million. An interest payment of approximately $6.0 million is due on the Debentures on June 30, 2009.

The Fund is contractually prohibited from paying interest on the Debentures while it is in default under the Senior Debt facility, except with the lenders' consent. Although the Fund and the lenders are in active and co-operative negotiations, to date, no agreement with the lenders has been reached, and there can be no assurance that an agreement will be reached. The Fund considers it unlikely that it will be in a position to make the Debenture interest payment that is due on June 30, 2009.

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. NPF 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 run by proven entrepreneurs at reasonable prices. We target above-average rates of return by putting our money to work behind talented entrepreneurs who have a record of success in their business and a growth opportunity for the future. The Fund currently has $552 million invested in 17 companies representing a diverse cross-section of the Canadian economy.

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