Rogers Sugar Income Fund

Rogers Sugar Income Fund

March 10, 2005 15:17 ET

Rogers Sugar Income Fund Announces A $50 Million Treasury Offering Of Convertible Debentures


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ROGERS SUGAR INCOME FUND

TSX SYMBOL: RSI.UN

MARCH 10, 2005 - 15:17 ET

Rogers Sugar Income Fund Announces A $50 Million
Treasury Offering Of Convertible Debentures

MONTREAL, QUEBEC--(CCNMatthews - March 10, 2005) - NOT FOR DISSEMINATION
INTO THE UNITED STATES OR TO UNITED STATES WIRE SERVICES

Rogers Sugar Income Fund (the "Fund") (TSX:RSI.UN) announced today a
public offering, on a bought deal basis, of $50 million principal amount
of convertible unsecured subordinated debentures with a coupon of 6% per
annum, payable semi-annually on June 29 and December 29, commencing on
June 29, 2005. The debentures will mature on June 29, 2012. The
debentures will be convertible at the holder's option into units of the
Fund at any time on the earlier of the maturity date and the business
day immediately preceding the date fixed by the Fund for redemption, at
a conversion price of $5.30 per unit.

The offering is being made through a syndicate of underwriters led by
Scotia Capital Inc. A preliminary short-form prospectus will be filed
with the securities regulatory authorities on or before March 14, 2005.

The net proceeds of the offering will be used to redeem part of the $100
million principal amount of the 8.173% senior secured debentures of
Rogers Sugar Ltd. ("Rogers"), a subsidiary of the Fund, due August 26,
2005, either prior to or upon maturity.

The Fund also announced today that Rogers expects to establish a bank
credit facility to repay the balance of the $100 million principal
amount of its 8.173% senior secured debentures on their maturity date of
August 26, 2005. Rogers has received a commitment letter from a Canadian
chartered bank to make available to Rogers credit facilities in the
aggregate amount of $90 million which may be used for such purpose.

Closing of the convertible debenture offering is expected on or about
March 31, 2005.

About Rogers Sugar Income Fund

The Fund is an open-ended, limited purpose trust established under the
laws of the Province of Ontario. The Fund holds all of the common shares
of Rogers and Lantic Sugar Limited ("Lantic").

Rogers has been in the sugar business since 1890 and is the leading
refiner, processor, distributor and marketer of sugar products in
Western Canada. As the sole sugar processor in Western Canada, Rogers
supplies over 90% of the demand for refined sugar in that region. Rogers
has two sugar processing facilities, a cane sugar refinery in Vancouver,
British Columbia and a beet sugar processing facility in Taber, Alberta.
Rogers' sugar products are marketed primarily under the "Rogers" trade
name and include granulated, icing, cube, yellow and brown sugars,
liquid sugars and specialty syrups.

Lantic is one of two refiners in Eastern Canada and operates a cane
sugar refinery in Montreal, Quebec. Lantic's sugar products are marketed
primarily under the "Lantic" trade name and include granulated, icing,
cube, liquid, yellow and brown sugars.

This document may contain forward-looking statements, relating to the
Fund's operations or to the environment in which it operates, which are
based on the Fund's operations, estimates, forecasts and projections.
These statements are not guarantees of future performance and involve
risks and uncertainties that are difficult to predict, and/or are beyond
the Fund's control. A number of important factors could cause actual
outcomes and results to differ materially from those expressed in these
forward-looking statements. These factors include those set forth in
other public filings. In addition, these forward-looking statements
relate to the date on which they are made. The Fund disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.

The debentures and the units issued upon conversion of the debentures
have not been and will not be registered under the United States
Securities Act of 1933 and accordingly will not be offered, sold or
delivered, directly or indirectly within the United States, its
possessions and other areas subject to its jurisdiction or to, or for
the account or for the benefit of a U.S. person.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Rogers Sugar Ltd. and Lantic Sugar Limited
    Mr. Daniel L. Lafrance
    Senior Vice-President Finance and CFO
    (514) 940-4350
    www.rogerssugar.com and www.lantic.ca