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CLEARWATER REPORTS AGREEMENT WITH TERM FINANCING SYNDICATE COMPRISED OF GE CAPITAL IN CANADA, THE PROVINCE OF NOVA SCOTIA, BDC AND EDC

Attention Business/Financial Editors 

CLEARWATER REPORTS AGREEMENT WITH TERM FINANCING SYNDICATE COMPRISED OF GE
CAPITAL IN CANADA, THE PROVINCE OF NOVA SCOTIA, BDC AND EDC 

/Not for distribution to United States or for dissemination in the United
States / 

HALIFAX, June 1/CNW/ - (TSX:CLR.UN, CLR.DB, CLR.DB.A): 
§	Clearwater's management continues to work on securing the funding to repay
debt facilities due on June 8, 2009 

§	Clearwater announces an agreement has been reached with a term financing
syndicate for a $57 million, three-year term loan representing an important
component of the June 8, 2009 refinancing 

Today, Clearwater Seafoods Limited Partnership (“Clearwater”) reported that it
has reached an agreement for a three-year $57 million term debt facility with a
syndicate of lenders as part of a debt refinancing scheduled for June 8, 2009. 
The syndicate which includes GE Capital, is being arranged by GE Capital
Markets (Canada) Ltd. and GE Capital Markets, Inc. (collectively, “GECM”) as
co-arranger, The Business Development Bank of Canada (“BDC”), Export
Development Canada (“EDC”) and the Province of Nova Scotia, through the
Industrial Expansion Fund. 

This new term debt facility will bear interest at market rates and be secured
by mortgages and charges on all property, vessels and interest in licenses of
Clearwater and certain of its wholly owned subsidiaries and is structured in
two tranches. GE Capital, BDC and EDC will participate in Tranche A in the
amount of $15 million, $12.5 million and $12.5 million respectively and will
have a first security position on tangible and intangible assets and a second
charge on licenses and quotas. The Province of Nova Scotia and BDC will
participate in Tranche B, in the amount of $15 million and $2 million
respectively, which will have a first security interest on Clearwater's
commercial fishing licenses and quotas and a second charge on all other
tangible and intangible assets.   Both tranches will have a second charge on
Clearwater's inventories and receivables.  Tranche A will be amortized monthly
on the basis of an 8 year period with the balance payable in full at maturity
in three years, Tranche B will be repayable in full at maturity in three years.
The proceeds from the two facilities will be used as part of the funds needed
to repay debt that matures on June 8, 2009.  Closing is conditional on certain
conditions precedent being met, including completion of GE Capital's final due
diligence, the negotiation, execution and delivery of definitive documentation
and refinancing of Clearwater's existing working capital revolver. This loan
commitment expires June 26th, 2009. 

Clearwater currently has outstanding approximately Canadian $95 million of debt
facilities.  Clearwater is confident the debt will be settled at maturity on
June 8, 2009 with the proceeds from this new term facility and an asset-based
revolving facility arranged by GECM.  While the syndication of the asset-based
facility is in process, Clearwater remains highly confident that it will be
able to secure sufficient funds to complete this refinancing.   Closing of the
Asset-Based facility is conditional on certain conditions precedent being met,
including completion of GE Capital's final due diligence, the negotiation,
execution and delivery of definitive documentation and closing the term debt
facility. 

Colin MacDonald, Chairman and Chief Executive Officer commented “The completion
of this agreement in what has been one of the toughest credit markets in recent
history speaks to the ongoing strength of Clearwater's business model.  We wish
to express our appreciation to GE Capital in Canada for their commitment to the
organization and in particular would like to express our appreciation for the
leadership shown by the Province of Nova Scotia, BDC and EDC to ensure
successful Nova Scotia based companies continue to have access to capital and
support to be competitive and sustainable.  We appreciate this support and look
forward to concluding this refinancing on June 8, 2009”. 

David Surrette, Regional Vice President, Atlantic Canada for EDC added"Clearwater is an excellent example of a strong Canadian company that could be
helped by EDC's capacity to undertake domestic financing.  EDC is happy to be
able to bring this much needed capacity to Canadian companies like Clearwater
to help alleviate the effects of the credit crunch."
About Clearwater

Clearwater has operations employing more than 1,200 employees throughout Nova
Scotia and is recognized for its consistent quality, wide diversity and
reliable delivery of premium seafood, including scallops, lobster, clams,
coldwater shrimp, crab and ground fish. 

Since its founding in 1976, Clearwater has invested in science, people,
technology, resource ownership and resource management to preserve and grow its
seafood resource. This commitment has allowed it to remain a leader in the
global seafood market. 

For further information: Robert Wight, Chief Financial Officer, Clearwater,
(902) 457-2369; Tyrone Cotie, Director of Corporate Finance and Investor
Relations, Clearwater, (902) 457-8181. 

Attachments:

clr news release re term debt refinancing .doc