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The Brick Group Income Fund completes recapitalization transaction

Fasken
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The Brick Group Income Fund

On May 28, 2009, The Brick Group Income Fund (the "Brick" or the "Fund") (TSX: BRK.UN) closed a recapitalization transaction designed to enhance the Brick's liquidity and operating flexibility. The transaction includes: a $110 million fully committed financing comprised of the sale of debt units; a new asset-based credit facility with GE Capital; and the repayment of all of the Brick's outstanding senior indebtedness of approximately $140 million.A committee of trustees of the Fund free from interest in the recapitalization transaction and unrelated to the parties involved in the recapitalization transaction recommended, and the board of trustees of the Fund approved entering into the recapitalization transaction and concluded that (i) the Fund is in serious financial difficulty; (ii) the recapitalization transaction is designed to improve the Brick's financial condition; and (iii) the terms of the recapitalization transaction are reasonable for the Brick in the circumstances. The Brick, together with its subsidiaries, is one of Canada's largest volume retailers of household furniture, mattresses, appliances and home electronics. Jon Levin and Dan Batista of Fasken Martineau advised the Special Committee of Trustees of the Brick in this recapitalization transaction.

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