Teranet Completes Private Placement in August 2006

On August 16, 2006 Teranet Inc., a wholly owned subsidiary of Teranet Income Fund, completed a private placement of two series of rated senior secured bonds: 4.668 per cent Series 2006-1 Bonds in an aggregate principal amount of $235 million due August 16, 2011, and 5.039 per cent Series 2006-2 Bonds due August 16, 2016, also in an aggregate principal amount of $235 million.

The private placement follows the recent initial public offering of the Fund in June 2006 and proceeds of the issue were used to repay a portion of Teranet's outstanding indebtedness under certain credit facilities entered into by Teranet in conjunction with the initial public offering.

Teranet was represented by its general counsel, Pamela Fruitman, and by Cassels Brock & Blackwell LLP. The Cassels Brock team consisted of Jeffrey Roy, Tom Koutoulakis and Lindsay Clements (securities).

RBC Dominion Securities Inc. acted as the sole agent in connection with the private placement and was represented by Osler, Hoskin & Harcourt LLP. The Osler team consisted of Chris Murray and Mark Hogan (securities), George Valentini and Richard Borins (financial services) and Kim Wharram (tax). RBC Dominion Securities was a co-lead of the syndicate of underwriters which underwrote the initial public offering. Osler also represented the underwriters and lenders under the credit facilities in connection with the initial public offering, with a team lead by Chris Murray and consisting of David Pathe, Jaime Larry, Julie Cordeiro (corporate & securities), George Valentini, Richard Borins and Tim Meadowcroft (financial services) and Jack Silverson and Sabrina Wong (tax).


Julie Cordeiro Tim Meadowcroft Jaime E. Larry Sabrina W.Y. Wong Kimberly J. Wharram Lindsay A. Clements Richard M. Borins Tom Koutoulakis Jeffrey P. Roy Jack A. Silverson David V. Pathe Mark Hogan Christopher S. Murray George M. Valentini