Date Closed

July 28, 2011

Lead Office

Toronto

Value

240.00 Million CAD

On July 28, 2011, Noranda Operating Trust closed its private placement of C$90 million aggregate principal amount of 6.875% senior secured notes due 2016.  The underwriters for the note issuance were CIBC World Markets Inc. and Scotia Capital Inc.

Concurrently with the closing of the Notes offering, Noranda entered into a 5-year asset-based credit facility with CIBC Asset-Based Lending Inc., as co-lead arranger and administrative agent, and Roynat Asset Finance, a division of Roynat Inc., as co-lead arranger. The ABL Facility provides for borrowing availability of up to C$150 million.

The net proceeds from the sale of the Notes, together with borrowings under the ABL Facility, were used to repay all amounts outstanding under Noranda's existing bridge credit facility.  Borrowings under the ABL Facility will also be used for working capital and general corporate purposes.

Noranda Operating Trust, headquartered in Toronto, Ontario, produces refined zinc metal and byproducts from zinc concentrates.

McCarthy Tétrault LLP represented Noranda Operating Trust, with a team led by Robert Stephenson.