Coventree Update on ABCP Market Disruption



    Toronto Stock Exchange Symbol: COF

    TORONTO, Aug. 23 /CNW/ - Coventree Inc. (TSX: COF) announced that
Coventree-sponsored conduits today placed $169 million of liquidity-backed
asset backed commercial paper ("ABCP") (liquidity-backed ABCP is also known as
A notes) and no extendible ABCP (also known as E notes). Of the $169 million
of A notes placed, $16 million was issued to the investors that held an equal
amount of A notes that matured today (these issuances are often referred to as
ABCP holders "rolling" or "rolling-over" their ABCP) and $153 million was
issued to investors that rolled-over notes that matured previously during the
market disruption. In total, $301 million A notes and $107 million E notes
matured today. All the E notes that matured today were extended. Since the
beginning of the market disruption, approximately $3.6 billion of A notes
issued by Coventree-sponsored conduits has matured, of which approximately
$619 million of A notes were rolled-over by holders of existing A notes. In
addition, during that time, an aggregate of approximately $2.3 billion E notes
has matured, of which approximately $163 million has been rolled-over into new
E notes and the remaining E notes have been extended.
    While Coventree sponsors and administers these ABCP conduits, the ABCP
issued by them are not obligations of Coventree or guaranteed by Coventree.
The assets in such Coventree-sponsored conduits are not owned by Coventree and
therefore cannot be used by Coventree in its business nor are they available
to meet the obligations of Coventree to its creditors. Similarly, the
liabilities of such Coventree-sponsored conduits are not obligations of
Coventree - the recourse of the debtholders of a conduit is generally limited
to the assets of that conduit.
    Coventree also announced that Coventree, the depositary in respect of the
Coventree-sponsored conduits' ABCP and the note issuing agent had settled a
protocol to permit the roll-over of A notes issued by Aurora Trust, Apollo
Trust, Comet Trust, Planet Trust, Rocket Trust, Gemini Trust and Slate Trust.
Beginning today, the depositary allowed holders of matured and unpaid A notes
who wished to roll-over such A notes, to withdraw the A notes from the
depositary and effect a roll-over on or following the maturity date of those A
notes. Coventree expects that roll-overs of existing E notes issued by
Coventree-sponsored conduits into new E notes will be available shortly for
investors who wish to do so.

    Forward-Looking Statements

    This press release includes certain forward-looking statements, including
those identified by the expressions "may", "would", "could", "will",
"anticipate", "believe", "plan", "forecast", "estimate", "expect", "intend",
"aim", "vision", "mission", "endeavour" and similar expressions to the extent
they relate to Coventree or its leaders or management ("leaders"). The
forward-looking statements are not historical facts but reflect such leaders'
current expectations regarding future results or events based on information
currently available to the leaders.
    These forward-looking statements are subject to a number of known and
unknown risks, uncertainties and assumptions. Many factors could cause actual
results, performance or events to differ materially from current expectations
that may be expressed or implied by such forward-looking statements,
including, without limitation, the matters discussed under "Risk Factors"
contained on pages 58 to 65 of Coventree's Final Prospectus dated November 15,
2006 and in other sections herein and therein. Should one or more of these
risks or uncertainties materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results, performance or
achievements could vary materially from those expressed or implied by the
forward-looking statements contained in this report. These factors should be
considered carefully and prospective investors should not place undue reliance
on the forward-looking statements. Although the forward-looking statements
contained in this press release are based upon what Coventree's leaders
currently believe to be reasonable assumptions, the leaders cannot assure
prospective investors that actual results, performance or achievements will be
consistent with these forward-looking statements. These forward-looking
statements are made as of the date of this press release and Coventree does
not intend, and does not assume any obligation, to update or revise these
forward-looking statements.

    %SEDAR: 00024386E




For further information:

For further information: Craig Armitage, The Equicom Group Inc., Tel:
(416) 815-0700 x278, Email: carmitage@equicomgroup.com

Organization Profile

Coventree Inc.

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