WOODSTOCK, ON, Feb. 28 /CNW/ - Contrans Income Fund (TSX: CSS.UN)
("Contrans") is pleased to announce that it has received a commitment for a
private loan placement with Integrated Private Debt Corp. ("IPD"), the private
corporate debt unit of Integrated Asset Management Corp. (TSX: IAM) for a $30
million senior secured loan. This new loan is subject to customary conditions
and is intended to refinance, in part, the $37.5 million loan that would
otherwise require repayment on December 15, 2008. The new loan provides for
monthly payments of interest only and extends for a term of seven years.
"We are announcing this new loan facility as it reflects our proactive
efforts to deal with a large repayment due near the end of this year,"
explained Stan Dunford, Chairman and Chief Executive Officer of Contrans.
"And, we have cash on hand at this time to settle the remaining $7.5 million
owing on the December 15, 2008 term loan. We have taken this step to remove
any uncertainty related to the debt markets, and to allow us to focus our
efforts on operating our business."
John Robertson, President of IPD, noted that "This loan commitment is
based on IPD's continuing and longstanding relationship with Contrans and its
management and reflects our belief in lending to well-managed and consistently
For further information:
For further information: Stan Dunford, Chairman and Chief Executive
Officer, or Greg Rumble, President and Chief Operating Officer, Phone: (519)
421-4600, E-mail: email@example.com, Web site: www.contrans.ca