Noranda Operating Trust Amends and Restates Credit Facility

On October 5, 2007, Noranda Operating Trust completed an amendment and restatement of its revolving credit facility with a syndicate of Canadian chartered banks. The amendment extends the credit facility to May 1, 2009. The amount available to be drawn under it will vary on a quarterly basis and will be based on percentages of inventory and accounts receivable from the previous quarter. The maximum available to be drawn at any time is $200 million (increased from $100 million) and the minimum available to be drawn is $55 million. Borrowings under the credit facility bear interest at rates that vary based on such rates as the prime rate, bankers' acceptance rate or Libor rate plus applicable margins. Canadian Imperial Bank of Commerce and The Bank of Nova Scotia continue to be co-lead arrangers.

Noranda Operating Trust is a subsidiary of Noranda Income Fund. Noranda Income Fund is an income trust whose units trade on the Toronto Stock Exchange. Noranda Income Fund was created to acquire the CEZ processing facility and ancillary assets of (then) Noranda Inc. (now Xstrata Canada Corporation) located in Salaberry-de-Valleyfield, Quebec. The CEZ processing facility is the second-largest zinc processing facility in North America and the largest zinc processing facility in eastern North America. It produces refined zinc metal and various by-products from zinc concentrates purchased from mining operations. The CEZ processing facility is operated and managed by Canadian Electrolytic Zinc Limited.

McCarthy T├ętrault LLP acted for Noranda Operating Trust, with a team that included Robert Stephenson, Michael Levinson, Linda Pieterson and Amrit Sidhu.

Borden Ladner Gervais LLP acted for the arrangers, with a team that included Howard Silverman, Sylvie Bouvette, Stephen Redican and Daniel McNamara.


Sylvie Bouvette Howard S. Silverman Michael D. Levinson Angelo Delli Santi Robert W.F. Stephenson Stephen J. Redican Amrit Sidhu