Normal course issuer bids by Clearwater Seafoods Income Fund


    HALIFAX, Sept. 13 /CNW/ - Clearwater Seafoods Income Fund (the "Fund")
announced today that the Toronto Stock Exchange has approved (i) its notice of
intention to make a normal course issuer bid for a portion of its Series 2007
7.25% convertible debentures (CLR.DB.A) (the "2007 Debentures") and (ii) the
renewal of its notice of intention to make a normal course issuer bid for a
portion of its 2004 7.00% convertible debentures (CLR.DB) (the "2004
Debentures"), in each case as appropriate opportunities arise from time to
time. The Fund's normal course issuer bids will be made in accordance with the
requirements of the exchange. The Fund may begin to purchase 2007 Debentures
and 2004 Debentures on or about September 17, 2007. No previous purchases of
2007 Debentures have been made. During the period from August 31, 2006 to
August 30, 2007, the Fund purchased $5,000,000 principal amount of 2004
Debentures at a weighted average price of $98.85 per $100 principal amount.
    As of September 13, 2007, $48,041,000 principal amount of 2007 Debentures
were outstanding and $45,000,000 principal amount of 2004 Debentures were
outstanding. In each case the public float was the same as the principal
amount outstanding. Pursuant to the notice, the Fund intends to acquire up to
$4,804,100 principal amount of 2007 Debentures and up to $4,500,000 principal
amount of 2004 Debentures in the 12-month period commencing September 17, 2007
and ending on September 16, 2008, which figure, in each case, represents 10%
of the public float. Purchases will be made by the Fund through the facilities
of the Toronto Stock Exchange and in accordance with applicable regulatory
requirements. The price which the Fund will pay for any debentures will be the
market price of such debentures at the time of acquisition. Pursuant to the
Toronto Stock Exchange rules, the maximum principal amount of 2007 Debentures
and 2004 Debentures that may be repurchased during the same trading day is
$31,484 and $6,271, respectively, subject to the Fund's ability to make one
block purchase per calendar week which exceeds such limits. Debentures will be
cancelled upon their purchase by the Fund. The Fund will fund the purchases
out of available cash. The board of trustees of the Fund believes that the
purchase by the Fund of a portion of its outstanding debentures is an
appropriate use of available cash and in the best interest of the Fund and its
unitholders. This repurchase will be accompanied by a similar repurchase of
intercompany debt between Clearwater Seafoods Limited Partnership
("Clearwater") and the Fund.
    The notice of intention provides that no appraisal or valuation regarding
the Fund, its material assets or securities, has been prepared within the two
years preceding the date of the notice, other than the valuation of the units
of the Fund dated October 20, 2005 that was prepared by Crosbie & Company Inc.
in connection with the proposed bid by Clearwater Fine Foods Incorporated
("CFFI") for up to 10,000,000 units of the Fund. On October 19, 2005, CFFI
announced that it would not proceed with its proposed bid. The board of
trustees of the Fund requested that Crosbie deliver the valuation based on the
assumption that CFFI's announcement of its decision not to make the proposed
bid had not been made. If the proposed bid had been made, it was Crosbie's
opinion, before the announcement that the bid would not be made, that the fair
market value of the units of the Fund was in the range of $6.50 to $7.60 per
unit. The full text of the valuation can be reviewed at the offices of the
Fund at 757 Bedford Highway, Bedford, Nova Scotia during usual business hours
and is also available at
    To the knowledge of the Fund, no trustee, director, senior officer or
other insider of the Fund currently intends to sell any debentures under the
bids. However, sales by such persons through the facilities of the TSX may
occur if the personal circumstances of any such person change or any such
person makes a decision unrelated to these normal course purchases. The
benefits to any such person whose debentures are purchased would be the same
as the benefits available to all other holders whose debentures are purchased.


    Clearwater is recognized for its consistent quality, wide diversity and
reliable delivery of premium seafood, including scallops, lobster, clams, cold
water shrimp, crab and groundfish.
    Since its founding in 1976 Clearwater has invested in science, people,
technology, resource ownership and resource management to preserve and grow
its seafood resource. This commitment has allowed it to remain a leader in the
global seafood industry.
    %SEDAR: 00018023E

For further information:

For further information: Robert Wight, Chief Financial Officer,
Clearwater, (902) 457-2369; Tyrone Cotie, Director of Corporate Finance and
Investor Relations, Clearwater, (902) 457-8181

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