Sun Gro Horticulture Income Fund Announces Capital Structure Improvement; Fixed Rate Private Placement of Long-Term Debt



    TRADING SYMBOL: Toronto Stock Exchange - GRO.UN

    VANCOUVER, March 26 /CNW/ - Sun Gro Horticulture Income Fund (the Fund)
today reported that it entered into a binding commitment for a US$50.0 million
fixed rate private placement of long-term debt with a major life insurance
company. At closing, which is expected in the second quarter, the net proceeds
of the private placement will be used to refinance the $21.5 million borrowed
to acquire GrowBest Holdings, LLC and other US and Canadian dollar debt. By
denominating a large portion of its debt facilities in US dollars and paying
the related carrying charges from its US-sourced income, Sun Gro will be able
to reduce its exposure to foreign exchange fluctuations going forward.
Moreover, this facility will extend the maturity of a significant portion of
Sun Gro's debt.

    Forward-Looking Statements

    This news release contains forward-looking statements. These statements
relate to future events or future performance and reflect Sun Gro's
expectations regarding its growth, results of operations, performance,
business prospects, opportunities or industry performance or trends. These
forward-looking statements reflect management's current internal projections,
expectations or beliefs and are based on information currently available. In
some cases, forward-looking statements can be identified by terminology such
as "may", "will", "should", "expect", "intend", "plan", "anticipate",
"believe", "predict", "potential", "continue" or the negative of these terms
or other comparable terminology. A number of factors could cause actual events
or results to differ materially from those discussed in the forward-looking
statements. Important factors that could cause actual results to differ
materially from Sun Gro's expectations include, among other things,
fluctuations in currency exchange rates and interest rates, changes in tax
laws, the impact of adverse weather conditions on harvesting operations, an
increase in freight rates, failure to successfully implement Sun Gro's
strategies of adding mix products and targeting the professional grower
market, failure of acquisitions to be accretive to unitholders or to be
accretive within Sun Gro's anticipated timeframes, inability to refinance
acquisition debt, the impact of an increase in fuel costs, reduced consumer
demand from natural disasters and economic factors and competitive activity.
Readers should specifically consider these factors, including the risks and
uncertainties described in the MD&A. Although Sun Gro believes that the
forward-looking statements contained in the MD&A are based on reasonable
assumptions, readers cannot be assured that actual results will be consistent
with such statements. Forward-looking statements are made as of the date of
the MD&A and Sun Gro assumes no obligation to update or revise them to reflect
new events or circumstances, except as required by law.

    Income Fund Profile

    Sun Gro Horticulture Income Fund was launched with the completion of an
Initial Public Offering on March 27, 2002. Units of the Fund are listed for
trading on the Toronto Stock Exchange. At December 31, 2007, there were
22,284,681 units of the Fund issued and outstanding. The Fund is dependent on
Sun Gro's operations, with monthly distributions to its unitholders based
entirely on Sun Gro's performance.

    Company Profile

    Sun Gro was founded in 1929 in Vancouver, BC and has grown to become
North America's largest producer of sphagnum peat, and the largest distributor
of peat moss, and peat and bark-based growing media to professional plant
growers in the US and Canada. Sun Gro sells its professional products
primarily to greenhouse, nursery and specialty crop growers, as well as to
golf course developers and landscapers. Sun Gro also sells peat moss and
peat-based growing mixes to retail customers, either by way of private label
partnerships or under its own brand names. Approximately 80% of the company's
sales volume goes to the US.
    Sun Gro currently has approximately 65,000 acres of peat bogs under
lease. The company's North America-wide production network now comprises 13
Canadian peat and peat-mixing plants and 13 US peat and bark-mixing plants.

    %SEDAR: 00017490E




For further information:

For further information: Bradley A. Wiens, Vice-President, Finance and
CFO, Sun Gro Horticulture Income Fund, Tel: (425) 373-3603, Email:
bradw@sungro.com, Website: www.sungro.com

Organization Profile

SUN GRO HORTICULTURE INCOME FUND

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890