News Centre

FOR: NORANDA INCOME FUND

Noranda Income Fund Announces the Closing of a $90 Million Offering of Senior Secured Notes and a $150 Million Asset-Based Revolving Credit Facility

Jul 28, 2011 - 11:06 ET

SALABERRY-DE-VALLEYFIELD, QUÉBEC--(Marketwire - July 28, 2011) - Noranda Income Fund (the "Fund") (TSX:NIF.UN) today announced that further to its announcement on July 22, 2011, its wholly-owned subsidiary, Noranda Operating Trust (the "Operating Trust"), has closed its private placement of $90 million aggregate principal amount of 6.875% senior secured notes due 2016 (the "Notes").

Concurrently with the closing of the Notes offering, the Operating Trust has entered into a 5-year secured asset-based revolving credit facility ("ABL Facility") providing availability of up to $150 million.

The net proceeds from the sale of the Notes, together with borrowings under the ABL Facility, will be used to repay all amounts outstanding under the Operating Trust's existing bridge facility and for general corporate purposes. Borrowings under the ABL Facility also will be used for working capital.

Noranda Income Fund is an income trust whose units trade on the Toronto Stock Exchange under the symbol "NIF.UN". Noranda Income Fund was created to acquire Noranda Inc.'s CEZ processing facility and ancillary assets (the "CEZ processing facility") located in Salaberry-de-Valleyfield, Québec. The CEZ processing facility is the second-largest zinc processing facility in North America and the largest zinc processing facility in eastern North America, where the majority of zinc customers are located. It produces refined zinc metal and various byproducts from zinc concentrates purchased from mining operations. The CEZ processing facility is operated and managed by Canadian Electrolytic Zinc Limited.

Further information about Noranda Income Fund can be found at www.norandaincomefund.com.



FOR FURTHER INFORMATION PLEASE CONTACT:

Michael Boone
Vice President and Chief Financial Officer,
Canadian Electrolytic Zinc Limited
Noranda Income Fund's Manager
416-775-1561



Terms & Conditions of Use - Privacy Policy