UE Waterheater Income Fund

UE Waterheater Income Fund

July 15, 2005 09:31 ET

UE Waterheater Income Fund Announces Close of Subscription Receipts Offer-Proceeds to be used for Acquisition of Protectron Holdings Inc.

TORONTO, ONTARIO--(CCNMatthews - July 15, 2005) -


UE Waterheater Income Fund ("UE Waterheater" or "the Fund") (TSX:UWH.UN) is pleased to announce the Closing of its offering of 7,720,000 Subscription Receipts at a price of $13.60 per Subscription Receipt, for proceeds of $104,992,000. Net proceeds of this offering of Subscription Receipts, combined with bank credit facilities, will be used to finance the indirect purchase by the Fund of Gestion Protectron Inc. / Protectron Holdings Inc. ("Protectron"), Canada's largest privately-held security monitoring and installation company, for approximately C$135 million ("the Acquisition").

The Subscription Receipts were sold to a syndicate of underwriters led by CIBC World Markets Inc. and offered by way of a short form prospectus filed in all provinces and territories of Canada. Holders of the Subscription Receipts are entitled to receive, for no additional consideration, one unit of the Fund with the closing of the Acquisition.

The Subscription Receipts have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, except under exemptions from those laws and applicable state securities laws.

"We're very pleased with the outcome of the Subscription Receipt offering," says Roger Rossi, UE Waterheater Income Fund president and CEO, adding: "Our acquisition of Protectron is expected to be accretive to distributable cash and is consistent with our business objectives of continuing to grow our portfolio of customers, leveraging our base of approximately one million customers, and maximizing operational efficiency."

About UE Waterheater Income Fund

UE Waterheater Income Fund is an unincorporated, open-ended, limited purpose trust established under the laws of the Province of Ontario, created to indirectly acquire and hold, through the UE Waterheater Operating Trust, the water heater rental business of Union Energy LP and its related commercial activities. Each Unit of the Fund represents an indirect ownership interest in Union Energy LP, which operates the Union Energy business.

Union Energy LP's main business is the rental and service of a portfolio of more than one million residential water heaters in Ontario, under the Union Energy, Ontario Hydro Energy and Reliance Home Comfort brand names. Union Energy LP owns and services Canada's second largest portfolio of rental water heaters in a program that was initiated in the 1960s. In addition, Union Energy LP has related commercial activities that complement the water heater rental business, being the retail sale, rental, servicing and financing of heating, ventilation and air conditioning equipment.

For more information on the UE Waterheater Income Fund, visit the web site at www.ueincomefund.com.

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