The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

ALGOMA CENTRAL CORPORATION Provides Update on Long-Term Refinancing

Tuesday, June 28, 2011

ALGOMA CENTRAL CORPORATION Provides Update on Long-Term Refinancing12:38 EDT Tuesday, June 28, 2011(TSX : ALC)TORONTO, June 28, 2011 /CNW/ - Algoma Central Corporation ("Algoma") is today providing the following update on its refinancing activities. As previously disclosed, the Corporation's existing bank facilities expire November 3, 2011. The Corporation has been in negotiation with its bankers and with other Canadian and US investors regarding renewal of its bank facilities and the refinancing of its long-term debt. In connection with this, the Corporation expects shortly to issue long-term senior secured notes to certain financial institutions at prevailing market rates.About Algoma Central Corporation Algoma Central Corporation owns and operates the largest Canadian flag fleet of dry and liquid bulk carriers operating on the Great Lakes - St. Lawrence Waterway, including 20 self-unloading dry-bulk carriers, 10 gearless dry bulk carriers and seven product tankers.  Algoma has recently announced a significant investment in state of the art new Equinox Class vessels for domestic dry-bulk service.  The Equinox Class will provide much needed improvements in operating efficiency and environmental performance.  Algoma also has interests in ocean dry-bulk and product tanker vessels operating in international markets. Algoma owns a diversified ship repair and steel fabricating facility active in the Great Lakes and St. Lawrence regions of Canada. In addition, Algoma owns and manages commercial real estate properties in Sault Ste. Marie, St. Catharines and Waterloo, Ontario.Cautionary StatementsThis press release may include forward-looking information within the meaning of applicable securities laws including information concerning the business and future results of Algoma. Forward-looking statements in this press release include statements about the proposed transaction, the expected date of closing, and the purchase of vessels by Algoma. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by this information. The statements in this press release are made as of the date of this release and are based on current expectations. Algoma undertakes no obligation to update forward-looking information, other than as required by law, or to comment on analyses, expectations or statements made by third-parties in respect of Algoma, its financial or operating results or its securities. Algoma cautions that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward-looking information, and that actual future results could be affected by a number of factors, many of which are beyond Algoma's control, including economic circumstances, technological changes, weather conditions and the material risks and uncertainties identified by Algoma and discussed on pages 11 to 15 of Algoma's Annual Information Form for the year ended December 31, 2010, which is available on SEDAR at www.sedar.com.For further information: Greg D. Wight, FCA       President and Chief Executive Officer  905-687-7850                  Peter Winkley, CA Vice-President, Finance and Chief Financial Officer 905-687-7897