Boyd Group announces intention to settle convertible debentures


    WINNIPEG, Oct. 4 /CNW/ - The Boyd Group Income Fund (TSX: BYD.UN) (the
"Fund") today announced that it intends to exercise its right to pay the
principal amount owing of approximately $2.3 million under its 8% convertible
debentures due December 2, 2007 (the "2002 Debentures") by way of the issuance
of Fund trust units ("Units") on December 2, 2007 at an issue price equal to
the greater of the weighted average trading price of the Units for the twenty
trading days immediately preceding the fifth day prior to which the principal
is to be paid, or $5.52 per Unit. At an issue price of $5.52, the Fund would
expect to issue approximately 420,000 Units to satisfy its 2002 Debenture
    Concurrent with the issuance of Units to retire the 2002 Debentures, the
Fund will also compel the conversion into Units, of its Series I 8.5%
convertible debentures due January 4, 2008 (the "Series I Debentures") in the
amount of approximately $0.1 million and redeem its 8% convertible debentures
due September 30, 2008 (the "2003 Debentures") in the amount of approximately
$1.6 million by issuance of Units in payment of the principal owing under the
2003 Debentures. The Fund expects to issue approximately 23,000 units at an
issue price of $4.70588 to settle the Series I Debentures and approximately
368,000 units at an issue price of $4.41 to settle the 2003 Debentures. The
issue prices of the Units are calculated pursuant to the terms of each of the
series of debentures which provide for a minimum price at which Units will be
issued notwithstanding what the actual trading price of the Units may be at
the time of issuance.
    In the aggregate, these transactions will reduce the Fund's liabilities
by approximately $4.0 million and are expected to increase the number of Units
outstanding by 811,000 to approximately 10.4 million Units. The Fund also has
approximately 860,000 Class A common shares outstanding that are convertible
into Fund Units on a one-for-one basis.

    About The Boyd Group Inc.

    The Boyd Group Inc. is the largest operator of collision repair centres
in Canada and among the largest in North America. The company operates
locations in the four western Canadian provinces principally under the trade
names Boyd Autobody & Glass and Service Collision Repair, as well as in six
U.S. states principally under the trade name Gerber Collision & Glass. The
company also operates Gerber National Glass Services, an auto glass repair and
replacement referral business with affiliated service providers throughout the
United States. For more information on The Boyd Group Inc. or Boyd Group
Income Fund, please visit our Web site at

    About The Boyd Group Income Fund

    The Boyd Group Income Fund is an unincorporated, open-ended mutual fund
trust created for the purposes of acquiring and holding certain investments,
including a majority interest in The Boyd Group Inc. and its subsidiaries.

    This press release contains forward-looking statements, other than
historical facts, which reflect the view of the Fund's management with respect
to future events. Such forward-looking statements reflect the current views of
the Fund's management and are made on the basis of information currently
available. Although management believes that its expectations are reasonable,
it can give no assurance that such expectations will prove to be correct. The
forward-looking statements contained herein are subject to these factors and
other risks, uncertainties and assumptions relating to the operations, results
of operations and financial position of the Fund. The Fund assumes no
obligation to update the forward-looking statements or to update the reasons
why actual results could differ from those contemplated by the forward-looking

    %SEDAR: 00018929E

For further information:

For further information: Terry Smith, CEO, Tel: (204) 895-1244 (ext.
222),; Bruce Wigle, Investor Relations, Tel: (416)
815-0700, or toll free 1-800-385-5451 (ext.228),

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