TRADING SYMBOL: Toronto Stock Exchange - CWA.UN
VANCOUVER, Sept. 19 /CNW/ - Coast Wholesale Appliances Income Fund (the "Fund") today announced a cash distribution of $0.10 per unit for the period from September 1, 2007 to September 30, 2007, to be paid October 15, 2007 to unitholders of record on September 28, 2007. This distribution is consistent with the amount of distributions contemplated by the Fund in its initial public offering prospectus of June 15, 2005. The Fund's policy is for unitholders of record on the last business day of each month to receive distributions on or about the 15th day of the following month. This is the Fund's twenty-seventh consecutive cash distribution.
A cash distribution to the 35% retained interest in Coast Wholesale Appliances LP (Coast) held by the previous owners of the Coast business will also be paid by Coast on October 15, 2007. This cash distribution is equivalent to the distributions to public unitholders for the period from July 1, 2007 to September 30, 2007. Distributions to the retained interest are currently subordinated to those of public unitholders. The terms of the subordination provide for quarterly payments to the retained interest only to the extent that sufficient distributable cash is available after public unitholders have received $0.10 per unit for each month in the respective quarter. This is the ninth consecutive quarterly cash distribution to the retained interest since the Fund's inception. In keeping with the provisions described in the Fund's IPO prospectus, the subordination is expected to be removed following the completion of the Fund's next full financial audit, anticipated to be conducted subsequent to its 2007 year-end.
Coast Wholesale Appliances Income Fund is an unincorporated, open-ended limited purpose trust launched on June 23, 2005 with the completion of an initial public offering of 6,525,000 trust units. The Fund was created to acquire and hold a 65% indirect interest in Coast Wholesale Appliances LP (Coast), a leading independent supplier of major household appliances to developers and builders of multi-family and single-family housing, and to retail customers in Western Canada. Founded in 1978, Coast operates 15 branch locations and four warehouse distribution centres across the four western provinces.