Noranda Income Fund Announces Special Cash Distribution of 2019 Taxable Income
TORONTO, Dec. 19, 2019 (GLOBE NEWSWIRE) -- Noranda Income Fund (TSX:NIF.UN) (the “Fund”) announced today that the Board of Trustees of Noranda Operating Trust (the “Board” or “Trustees”) has approved a special cash distribution of $0.03 per unit payable on January 27, 2020, to Priority and Ordinary Unitholders of record as at the close of business on December 31, 2019. This special cash distribution is based on the Fund’s 2019 unconsolidated taxable income calculated in accordance with the Fund’s Trust Indenture.
All cash distributions to unitholders must also be approved by the Fund’s debtholders and they have provided their consent for this special distribution.
This special cash distribution does not signal a return to regular recurring monthly distributions to unitholders. Please consult the section entitled, “Distribution Policy” below for more information.
Distribution Policy
When not restricted, and as may be considered appropriate by the Board, the Fund’s policy is to make monthly distributions to Unitholders equal to the distributable cash flows from operations, before variations in working capital and after permanent debt reductions and such reserves as may be considered appropriate by the Trustees. The Fund determines the cash available for distribution, if any, on a monthly basis for the Unitholders of record of the Fund on the last business day of each calendar month and these distributions are to be paid on or about 25 days thereafter.
In determining whether there shall be a distribution and the level thereof, the Board periodically reviews the Fund’s financial performance, business environment and prospects, and determines the appropriate levels of reserves. The Board also continues to evaluate on a monthly basis the expected future cash flows of the Fund as well as the reserves that may be required in the future. On January 31, 2017, in light of the negative market conditions facing the Fund, the Board announced the suspension of future monthly distributions to Unitholders. There is no assurance that monthly distributions will resume in the future.
Noranda Income Fund is an income trust whose units trade on the Toronto Stock Exchange under the symbol “NIF.UN”. Noranda Income Fund owns the electrolytic zinc processing facility and ancillary assets (the “Processing Facility”) located in Salaberry-de-Valleyfield, Québec. The 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 by-products from sourced zinc concentrates. The Processing Facility is operated and managed by Canadian Electrolytic Zinc Limited, a wholly owned subsidiary of Glencore Canada Corporation.
Further information about Noranda Income Fund can be found at .
For further information, please contact:
Paul Einarson
Chief Financial Officer, Canadian Electrolytic Zinc Limited, Noranda Income Fund's Manager
514-745-9380
