April 19, 2010 / 10:29 PM / 8 years ago

UPDATE 1-Noranda Income Fund gets extension of credit facility

* Says no cash distribution to be paid during extension period

* Extension to help subsidiary to pursue refinancing of notes

* Max amount available to be drawn lowered

April 19 (Reuters) - Canada’s Noranda Income Fund (NIF_u.TO) said its subsidiary has secured an extension of its revolving credit facility for six months, under the condition that no cash distributions are made during the extension period.

The extension will enable the subsidiary, Noranda Operating Trust, to pursue the refinancing of $153.5 million senior secured notes that mature on Dec. 20, the fund said.

Noranda, which owns a zinc-processing plant in Quebec, said under the extension, the maximum amount that can be drawn at any time is $120 million down from $200 million.

The fund said it expects to approach noteholders throughout 2010 seeking to refinance the senior secured notes on a long-term basis.

The credit facility has been extended to Nov. 3 from May 3.

For the first quarter, Noranda’s processing facility produced 66,466 tonnes of zinc, up from 58,080 tonnes in 2009. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Ratul Ray Chaudhuri)

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