For Immediate Release
Toronto, Ontario – June 25, 2004 - BFI Canada Income Fund (TSX:BFC.UN) (the “Fund”) today announced that its wholly-owned subsidiary, BFI Canada Holdings Inc. (“Holdings”), has completed a C$105-million debt private placement financing with institutional investors.
The private placement is comprised of $47-million of 6.123% Senior Secured Debentures maturing June 26, 2009 and $58-million of 7.015% Senior Secured Debentures maturing June 26, 2014.
Concurrent with the closing of the debt private placement, Holdings closed out its $100 million bond forward contract entered into in May 2004 to lock in the underlying Government of Canada bond yield, resulting in a cash settlement in favour of Holdings of $1.55 million.
The Debentures have been assigned a rating of BBB (low), with a stable trend, by Dominion Bond Rating Service Limited.
Proceeds of the transaction will be used to repay indebtedness under Holdings’ existing credit facility and for general corporate purposes. CIBC World Markets acted as Lead Agent for the transaction, with National Bank Financial and TD Securities as co-agents.
Also concurrent with the debt private placement, Holdings entered into a new bank credit facility comprising a $10-million working capital revolver and a $50-million bridge revolver, to be used to finance growth capital expenditures and strategic acquisitions.
“With solid, long-term financing in place at attractive rates, together with readily accessible credit facilities, the Fund will be able to efficiently meet the demands of future growth and development initiatives,” said Keith Carrigan, President and CEO. “The Fund continues to maintain a strong balance sheet and is well-positioned to take advantage of strategic acquisitions and growth opportunities as they arise.”
BFI Canada Income Fund, through its subsidiaries, is one of Canada’s largest full-service waste management companies, providing non-hazardous solid waste collection and landfill disposal services for municipal, commercial, industrial and residential customers in the provinces of British Columbia, Alberta, Manitoba, Ontario and Quebec. Through its wholly-owned subsidiaries, the Fund owns and operates three landfills, operates one municipally-owned landfill, carries on collection operations in 19 markets, and operates three transfer collection stations, seven material recovery collection facilities and one landfill gas to energy facility. The Fund's units are listed on the Toronto Stock Exchange under the symbol BFC.UN. For more information on the Fund, visit www.bficanada.com.
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This document may contain forward-looking statements relating to the Fund’s operations or to the environment in which it operates, which are based on the Fund’s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, or are beyond the Fund’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in the Fund’s Initial Annual Information Form for the period ended December 31, 2003. Consequently, readers should not rely on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, the Fund cannot assure unitholders that actual results will be consistent with these forward looking statements, and the Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact:
Joseph D. Quarin, Chief Financial Officer
Tel: (416) 401-7722
Email: joe.quarin@bficanada.com
Anne MacMicken, Manager, Investor and Employee Relations
Tel: (416) 401-7729
Email: anne.macmicken@bficanada.com
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