Clearwater Finance Inc. - Company Announcement

CLEARWATER REPORTS AGREEMENTS FOR SUCCESSFUL REFINANCING OF MATURING DEBT FACILTIES

Attention Business/Financial Editors 

CLEARWATER REPORTS AGREEMENTS FOR SUCCESSFUL REFINANCING OF MATURING DEBT
FACILTIES 

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

HALIFAX, June 8/CNW/ - (TSX:CLR.UN, CLR.DB, CLR.DB.A): 
§	Management reaches agreement for successful refinancing of maturing debt
facilities with $60 million revolving asset backed debt facility and $59.5
million in new term debt 

Today, Clearwater Seafoods Limited Partnership (“Clearwater”) reported that
working with GE Capital Markets (Canada) Ltd. and GE Capital Markets, Inc.
(collectively, “GECM”) it has received commitments for the refinancing of its
near-term debt facilities. 

The new $60 million revolving debt facility has a three-year term and will be
fully underwritten byGE Capital in Canada.  The facility will bear interest at
market rates, which will be set at closing with interest to be paid monthly. 
The facility is secured by a first charge on trade receivables and inventory. 

Clearwater previously announced $57 million in new term debt on June 1, 2009. 
This debt facility has been increased to $59.5 million based on an additional
commitment from Export Development Canada (“EDC”) who has approved a total loan
of $15 million versus the $12.5 million previously announced.  This facility
also includes GE Capital, The Business Development Bank of Canada (“BDC”), and
the Province of Nova Scotia, through the Industrial Expansion Fund.   The
facility will bear interest at market rates, which will be set at closing. 

Closing of both these new facilities are conditional upon certain conditions
precedent being met and including completion of GE Capital's final due
diligence and the negotiation, execution and delivery of definitive
documentation. These loan commitments expire on June 26, 2009. 

The facilities being repaid, which approximate CDN $93 million as of June 8,
2009 will be settled on or before June 15, 2009 with the proceeds from the
above facilities.   The outgoing lenders have granted an extension from June 8,
2009 to June 15, 2009 to provide additional time to finalize documentation and
close the new facilities. 

Both of these new facilities contain positive covenants, including without
limitation, minimum earnings before interest, taxes, depreciation and
amortization levels to debt levels and additional negative covenants, including
without limitation, restrictions on capital spending and asset dispositions,
restrictions on incurring additional indebtedness and limitation on the payment
of distributions.  There are also provisions for cash sweeps that, depending on
annual cash flows, could result in additional payments being made on the term
debt. 

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 for underwriting the working capital line and leading the
syndicate in the term debt component.  We again would like to express our
appreciation for the leadership shown by the Province of Nova Scotia, BDC and
EDC.” "In a period where the credit markets remain challenged, we are pleased to
provide Clearwater a solid source of financing flexibility for their ongoing
operations through our asset-based credit facility.  Where refinancing is top
of mind for many Canadian companies, having credit available is essential and
GE Capital's ability to provide it at this time illustrates its financial
strength and commitment to the Canadian market," commented Ellis Gaston,
Managing Director for Corporate Finance at GE Capital in Canada. 

Mr. MacDonald concluded, “We will build on this success over the next several
years by focusing on reducing our leverage and the absolute amount of our debt.
 This will come from a combination of improved earnings levels, which will
improve trailing EBITDA levels, and from using the positive cash flow of the
business to reduce debt.” 
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.