December 19, 2008 09:50 ET

Yellow Pages Income Fund Further Increases its Liquidity and Capital Resources

MONTREAL, QUEBEC--(Marketwire - Dec. 19, 2008) - Yellow Pages Income Fund (TSX:YLO.UN) announces that it has increased the size of its revolving bank facility entered into in May 2008 from $250 million to $450 million. This facility has a final maturity of May 2011 and can be used for general corporate purposes. Yellow Pages Group (YPG) currently intends to use this facility to refinance the Series 1 Medium Term Notes maturing in April 2009. This facility combined with its core revolving bank facility increases the company's committed bank lines to $1.150 billion, providing YPG with ample liquidity to fund its operations. YPG will also continue to monitor fixed income market conditions under its June 2008 Short Form Base Shelf Prospectus.

YPG remains committed to investment grade credit ratings and to maintaining strong liquidity at all times.

Given recent trading activity in its units, YPG also wants to reaffirm its distribution policy and the current level of cash distributions of $1.17 per annum. Over the last two years, YPG has communicated its commitment to a successful conversion from an income trust to a corporate structure on or about December 31, 2010. Through the combination of continued growth in the Distributable cash per unit and more modest cash distribution increases, YPG's payout ratio was progressively reduced to reach 78% in the third quarter of 2008.

The distribution policy is reviewed periodically by the Board of Trustees taking into account a number of factors including the current and prospective performance of the business. The company remains confident in its ability to achieve its objective of further reducing the payout ratio to the low 70% range by 2010.

About Yellow Pages Income Fund

Yellow Pages Income Fund indirectly holds an approximate 98% ownership interest in Yellow Pages Group and Trader Corporation. Yellow Pages Group is Canada's leading local commercial search provider. The Company publishes annually more than 340 Yellow Pages™ and residential directories. It owns and manages Canada's most visited online directories -™ and, as well as™, a network of seven local city sites. Trader Corporation is a Canadian leader in print and online vertical media with approximately 200 publications and 20 web sites covering four product verticals: automotive, real estate, general merchandise and employment. Its main brands include Auto Trader™, Auto Hebdo™, The Bargain Finder™, Buy&Sell™, Renters News™ and Home Renters' Guide™. For more information about the Fund, visit

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements about the financial conditions of the Fund. These statements are forward-looking as they are based on our current expectations, as at December 19, 2008. Our actual results could materially differ from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, there is no assurance that any forward-looking statements will materialize. We disclaim any intention or obligation to update any forward-looking statements, except as required by law, even if new information becomes available, as a result of future events or for any other reason.

Contact Information

  • Media
    Yellow Pages Income Fund
    Annie Marsolais
    Director, Corporate Communications
    Investor Relations
    Yellow Pages Income Fund
    Anne-Sophie Roy
    Director, Corporate Finance and Investor Relations