TORONTO, ONTARIO–(Marketwire – Feb. 5, 2009) – The Consumers' Waterheater Income Fund (the "Fund") (TSX:CWI.UN) and The Consumers' Waterheater Operating Trust (the "Trust") today announced that the Trust has entered into an underwriting agreement relating to the offering of $60 million aggregate principal amount of 6.20% Series 2009-1 Senior Notes due April 30, 2012 and $270 million aggregate principal amount of 6.75% Series 2009-2 Senior Notes due April 30, 2014. The Senior Notes will be offered under a prospectus supplement to the Trust's short form base shelf prospectus dated March 19, 2008. The prospectus supplement will be filed with the securities regulatory authorities in each of the provinces of Canada. The Senior Notes are being offered on an underwritten basis by a syndicate of underwriters led by TD Securities Inc., and including Scotia Capital Inc., Desjardins Securities Inc. and HSBC Securities (Canada) I nc. The offering is expected to close on or about February 13, 2009 and the net proceeds will be used to repay existing indebtedness, including the Trust's $310 million bridge credit facility. It is a condition of closing that the Senior Notes receive a rating of "A" from DBRS Limited ("DBRS") and Standard & Poor's Rating Services ("S&P"). DBRS and S&P have assigned a provisional "A" rating and a preliminary "A" rating, respectively, for the Senior Notes. The provisional "A" rating from DBRS and the preliminary "A" rating from S&P are subject to a satisfactory review of final documentation related to the Senior Notes. The offering of the Senior Notes is only being made by way of prospectus. The prospectus supplement and the short form base shelf prospectus, including the documents incorporated by reference therein, contain important information concerning these securities. Prospective investors should read the prospectus supplement and the short form base shelf prospectus before making an investment decision. This news release does not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities being offered have not been approved or disapproved by any regulatory authority nor has any such authority passed upon the accuracy or adequacy of the prospectus supplement or the short form base shelf prospectus. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered, sold or delivered within the United States of America. Copies of the short form base shelf prospectus and, when filed, the prospectus supplement, relating to the offering of the Senior Notes may be obtained from SEDAR at www.sedar.com. About The Consumers' Waterheater Income Fund and The Consumers' Waterheater Operating Trust The Fund and Trust own a portfolio of approximately 1.4 million installed water heaters and other assets, ren ted primarily to residential customers in Ontario. The Fund also owns Stratacon, a leading "smart" sub-metering company, with metering contracts for approximately 35 thousand condominium and apartment suites in Alberta, Ontario and elsewhere in Canada. Additional information regarding the Fund and the Trust, including their respective current Annual Information Forms, are available on SEDAR at www.sedar.com.
For further information: The Consumers’ Waterheater Income Fund
The Consumers’ Waterheater Operating Trust
Steve Bower, CFO
Email: [email protected]