Daily News: May 3, 2012

Clearwater Engages GE Capital, BMO to Review Alternatives

Clearwater Seafoods reported it has engaged GE Capital Markets and BMO Capital Markets to assist with the review of refinancing alternatives for its current debt facilities. The company is contemplating a $65 million asset-based revolving credit facility and the issuance of $210 million in term loans.

The purpose of such a refinancing is threefold to provide an improved capital structure to support the execution of management’s five-year growth plan for the business, to reduce the company’s cost of capital and to continue to build shareholder value.

As part of this refinancing review, an independent appraisal of Clearwater’s quotas was completed by TriNav Fisheries Consultants, which placed a value on the licenses and quotas of $453 million. As at December 31, 2011, the book value of Clearwater’s quotas and fishing rights was $112 million. The net book value of Clearwater’s net working capital, vessels, plant and equipment when combined with the appraised value of its licenses is approximately 2.5x the value of Clearwater’s total debt, providing significant excess security for Clearwater’s prospective term loan lenders.