Clearwater Seafoods amends 7% convertible debentures due 2010

By Devika Patel

Knoxville, Tenn., Nov. 12 - Clearwater Seafoods Income Fund said it has obtained approval from holders of its 7% convertible unsecured subordinated debentures due Dec. 31, 2010 to amend the debentures' terms. More than 95% of the holders who voted approved the amendments.

Under the new terms, the debentures' interest rate will be increased to 10.5% from 7%. The conversion price will be reduced to $3.25 per fund unit from $12.25 per fund unit, and the maturity date will be extended to Dec. 31, 2013 from Dec. 31, 2010. Also, the debentures will not be redeemable before June 30, 2011.

The changes are expected to take effect on Nov. 18.

Investors will receive a 7% interest rate for the period from July 1, 2010 to, but excluding, the date the changes take effect and at a rate of 10.5% from the effective date up to but excluding Dec. 31, 2010.

"I want to thank our debentureholders for their strong support of this initiative and their continued backing of the fund," chief executive officer Ian Smith said in a press release. "I also want to recognize the outstanding efforts of our advisors Cormark Securities, McInnes Cooper and Kingsdale Shareholder Services toward achieving this result."

Clearwater is a Halifax, N.S.-based supplier of premium seafood.

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