NORANDA INCOME FUND

NORANDA INCOME FUND

October 05, 2007 09:08 ET

Noranda Income Fund Amends Its Revolving Facility

VALLEYFIELD, QUEBEC--(Marketwire – Oct. 5, 2007) - Noranda Income Fund (TSX:NIF.UN) (the "Fund") announced today that its subsidiary, Noranda Operating Trust, has completed an amendment with a syndicate of Canadian chartered banks to its Revolving Facility. The amended Revolving Facility has been extended to May 1, 2009. The amount available to be drawn on the Revolving Facility will vary on a quarterly basis and will be based on percentages of the Fund's inventory and accounts receivable from the previous quarter. The maximum available to be drawn at any time is $200 million and the minimum available to be drawn is $55 million. The amount currently available to be drawn is $196 million. Prior to the amendment, the Revolving Facility was $100 million. Borrowings under the Revolving Facility bear interest at rates that vary with the prime rate, the bankers' acceptance rate, or Libor rates plus applicable margins.

Canadian Imperial Bank of Commerce and the Bank of Nova Scotia continue to be co-lead arrangers for the Revolving Facility.

Noranda Income Fund is an income trust whose units trade on the Toronto Stock Exchange under the symbol "NIF.UN". Noranda Income Fund was created to acquire Noranda Inc.'s CEZ processing facility and ancillary assets (the "CEZ processing facility") located in Salaberry-de-Valleyfield, Quebec. The CEZ processing facility is the second-largest zinc processing facility in North America and the largest zinc processing facility in eastern North America, where the majority of its customers are located. It produces refined zinc metal and various by-products from zinc concentrates purchased from mining operations. The Processing Facility is operated and managed by Canadian Electrolytic Zinc Limited.

Contact Information

  • Noranda Income Fund
    Michael Boone
    Vice President & Chief Financial Officer,
    Noranda Income Fund's Manager
    (416) 775-1561