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Concerned Unitholders of Arctic Glacier Income Fund Propose a Recapitalization of the Fund to Repay all Current Debt Outstandin

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  Published in House and Home on Monday, September 19th 2011 at 13:07 GMT by Market Wire
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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.