South Coast Partners Acquires Oceanex Income Fund

On November 8, 2007, affiliates of South Coast Partners Limited Partnership (“South Coast”), a newly formed entity owned by a consortium of investors comprised of Captain Sidney J. Hynes, OPTrust Private Markets Group and Terrma Capital Corp., completed the acquisition of all of the issued and outstanding common shares and promissory notes of Oceanex Inc. (“Oceanex”), the wholly-owned subsidiary of Oceanex Income Fund (the “Fund”), for approximately $165 million.

Oceanex is an intermodal transportation company, which generates all of its revenue from the operation of container and roll-on/roll-off vessels, marine terminals and a large fleet of containers and trailers. It provides door-to-door freight services from any origin in North America to destinations in Newfoundland and Labrador. Oceanex operates the only two marine terminals in the province of Newfoundland and Labrador that are fully equipped to handle containers and trailers.

Shortly after the completion of the acquisition, the Fund redeemed all of its outstanding trust units for $19.00 in cash per unit. The common shares and promissory notes of Oceanex represented substantially all of the assets of the Fund.

South Coast was represented by Osler, Hoskin & Harcourt LLP with a team comprised of Doug Bryce, John Groenewegen, Adam Taylor, David Vernon and Andrew Powers (M&A), Michael Matheson, Dale Seymour and Tara Elliott (financial services), Damian Rigolo (labour and employment) and Paul Litner (pension & benefits). South Coast was also advised by PricewaterhouseCoopers LLP with a team led by Doug Frost (M&A tax services) and CIBC World Markets Inc.

The Fund was represented by Stikeman Elliott LLP with a team comprised of Marc Barbeau, Nicolas Beugnot, Jean-Francois Laroche, Dana Borshy and Robert Notkin (M&A), Franco Gadoury and Marc-André Bélanger (tax), Susan Hutton (regulatory) and Jean Carrier (environmental). The Fund was also advised by Scotia Capital Inc.

The acquisition was financed by a syndicate of senior lenders led by the Canadian Imperial Bank of Commerce, which was represented by McCarthy Tétrault LLP with a team lead by Joel Scoler and including Justin Lapedus and John Park