Canadian Oil Sands prices US$500 million of senior notes


    CALGARY, May 6 /CNW/ - (TSX - COS.UN) - Canadian Oil Sands Trust (the
"Trust") today announced that its wholly-owned subsidiary, Canadian Oil Sands
Limited (the "Corporation"), has agreed to issue US$500 million principal
amount of 7.75% senior unsecured notes. The notes mature on May 15, 2019 and
were priced at $99.792 to yield 7.78%.
    Proceeds from the issue will be used to repay the principal amount on
maturity of approximately CAD$200 million of unsecured notes which mature on
June 29, 2009 and approximately US$250 million of unsecured notes which mature
on August 10, 2009, as well as for other general corporate purposes. The
transaction is expected to close on May 11, 2009, subject to customary closing
    The offering is being made pursuant to Rule 144A under the Securities Act
of 1933 (the
    "Act"). The offering will not be registered under the Act and none of the
notes may be offered or sold in the United States absent registration under
the Act or the availability of an applicable exemption from registration
requirements. Offers and sales in Canada will be made only pursuant to
exemptions from the prospectus requirements of applicable Canadian provincial
or territorial securities laws. This press release does not constitute an
offer to sell or the solicitation of an offer to buy any security.

    Canadian Oil Sands provides a pure investment opportunity in the Syncrude
Project through its 36.74 per cent working interest. The Trust is an
open-ended investment trust managed by Canadian Oil Sands Limited and has
approximately 483.2 million units outstanding, trading on the Toronto Stock
Exchange under the symbol COS.UN.
    Located near Fort McMurray, Alberta, Syncrude Canada operates large
oil-sands mines and an upgrading facility that produces a light, sweet crude
oil on behalf of its joint venture owners, which include Canadian Oil Sands
Limited, ConocoPhillips Oilsands Partnership II, Imperial Oil Resources, Mocal
Energy Limited, Murphy Oil Company Ltd., Nexen Oil Sands Partnership, and
Petro-Canada Oil and Gas.

    Advisory: In the interest of providing Canadian Oil Sands (the "Trust" or
"we") unitholders and potential investors with information regarding the
Trust, including management's assessment of the Trust's future plans and
operations, certain statements throughout this press release contain
"forward-looking statements". Forward-looking statements in this release
relate to the anticipated closing date for this transaction and the Trust's
expectations that the offering will be successfully completed consistent with
the terms outlined above. By their nature, forward-looking statements involve
numerous assumptions, known and unknown risks and uncertainties, both general
and specific, that contribute to the possibility that the predictions,
forecasts, projections and other forward-looking statements will not occur.
Although the Trust believes that the expectations represented by such
forward-looking statements are reasonable, there can be no assurance that such
expectations will prove to be correct. Some of the risks and other factors
which could cause results to differ materially from those expressed in the
forward-looking statements contained in this release include, but are not
limited to, general capital market disruptions and such other risks and
uncertainties described from time to time in the reports and filings made with
securities regulatory authorities by the Trust. You are cautioned that the
foregoing list of important factors is not exhaustive. Furthermore, the
forward-looking statements contained in this release are made as of the date
of this release, and the Trust does not undertake any obligation to update
publicly or to revise any of the included forward-looking statements, whether
as a result of new information, future events or otherwise. The
forward-looking statements contained in this release are expressly qualified
by this cautionary statement.

    Canadian Oil Sands Limited
    Marcel Coutu
    President & Chief Executive Officer

    Units Listed - Symbol: COS.UN
    Toronto Stock Exchange

For further information:

For further information: Siren Fisekci, Director Investor Relations,
(403) 218-6228,

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