TORONTO, Sept. 19, 2011 /CNW/ - Significant unitholders of Arctic
Glacier Income Fund (TSX: AG.UN) ("Arctic Glacier" or the "Fund"), including Coliseum Capital Partners, L.P. and Talamod Master Fund,
LP (collectively, the "Concerned Unitholders"), along with a significant institutional lender, today announced that
they have arranged for a proposed $300 million global refinancing of
the Fund's balance sheet (the "Proposed Refinancing"), which will include:
a new secured revolving facility and secured term loan
a new equity financing to be derived from a rights offering available to
all unitholders and to be backstopped by the Concerned Unitholders
Collectively, the Proposed Refinancing would be sufficient to repay the
Fund's existing lenders in full, including any prepayment penalties, as
well as leave the Fund well-capitalized to pursue future growth
opportunities. This proposal benefits all of Arctic Glacier's current
stakeholders: current lenders will be repaid in full; unitholders'
equity value will be preserved and enhanced; parties who have
negotiated settlement agreements with the Fund will have assurance that
Arctic Glacier will fulfill those agreements; and, employees and other
community stakeholders will be able to take comfort that a properly
capitalized Arctic Glacier can again focus on pursuing long-term,
strategic goals across North America from its headquarters in Winnipeg.
"We are thrilled to propose a financing for Arctic Glacier that provides
a full scale solution to capital structure challenges that have been
severely disruptive and distressing to all stakeholders," said Chris
Shackelton of Coliseum. Furthermore, he stressed, "We believe that
this is a transformational plan that will position Arctic Glacier to
take advantage of future opportunities in their business and industry."
By structuring the proposed equity investment as a backstopped rights
offering, the proposal allows all unitholders the opportunity to
participate and avoid any dilution to their ownership, while giving the
trustees of the Fund a level of certainty that the equity capital will
be available to complete the Proposed Refinancing.
This news release does not constitute a solicitation of proxies.
SOURCE Concerned Unitholders of Arctic Glacier Income Fund
For further information:
Walied Soliman (Counsel to the Concerned Unitholders)
Norton Rose OR LLP