Inter Pipeline Fund Announces April 2009 Cash Distribution
CALGARY, ALBERTA--(Marketwire - April 8, 2009) - Inter Pipeline Fund (Inter Pipeline) (TSX:IPL.UN) announced today the declaration of a cash distribution of $0.07 per unit for April 2009. This distribution will be paid on or about May 15th to unitholders of record on April 30th, 2009.
Inter Pipeline believes it is well positioned to maintain its current level of cash distributions to unitholders through 2011 and beyond, despite becoming a taxable entity. This view is based on Inter Pipeline's continuing strong financial performance, attractive fundamentals in each of its business segments and the expected increase in cash flow following completion of the Corridor expansion project.
Premium Distribution(TM) and Distribution Reinvestment Plan
Inter Pipeline would like to inform unitholders that it intends to implement a Premium Distribution (TM) and Distribution Reinvestment Plan (Premium DRIP) in the coming months. A Premium DRIP represents an enhancement to Inter Pipeline's existing DRIP program whereby unitholders may elect to receive an additional 2% cash payment above the regular monthly distribution amount.
Inter Pipeline anticipates raising $50 to $75 million of equity capital annually through its new Premium DRIP program. This assumes, among other things, an investor participation level comparable to that experienced by industry peers that have implemented similar plans. Full details of the Premium DRIP will be provided once legal and regulatory requirements have been completed.
(TM) Denotes trademark of Canaccord Capital Corporation.
Inter Pipeline Fund
Inter Pipeline is a major petroleum transportation, bulk liquid storage and natural gas liquids extraction business based in Calgary, Alberta, Canada. Structured as a publicly traded limited partnership, Inter Pipeline owns and operates energy infrastructure assets in western Canada, the United Kingdom, Germany and Ireland. Additional information about Inter Pipeline can be found at www.interpipelinefund.com
Inter Pipeline is a member of the S&P/TSX Composite Index. Class A Units trade on the Toronto Stock Exchange under the symbol IPL.UN.
Only persons who are residents of Canada, or if partnerships are Canadian partnerships, in each case for purposes of the Income Tax Act (Canada) are entitled to purchase and own Class A Units of Inter Pipeline.
Certain information contained herein may constitute forward-looking statements that involve risks and uncertainties. Forward-looking statements in this news release include, but are not limited to, statements regarding Inter Pipeline's belief that it is well positioned to maintain its current level of cash distributions to unitholders through 2011 and beyond, and statements regarding the amount of equity a Premium DRIP might raise. Readers are cautioned not to place undue reliance on forward-looking statements. Such information, although considered reasonable by the General Partner of Inter Pipeline at the time of preparation, may later prove to be incorrect and actual results may differ materially from those anticipated in the statements made. For this purpose, any statements that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements often contain terms such as "may", "will", "should", "anticipate", "expects" and similar expressions. Such risks and uncertainties include, but are not limited to, risks associated with operations, such as loss of markets, regulatory matters, environmental risks, industry competition, potential delays and cost overruns of construction projects, including the Corridor pipeline system expansion project, and the ability to access sufficient capital from internal and external sources. You can find a discussion of those risks and uncertainties in Inter Pipeline's securities filings at www.sedar.com. The forward-looking statements contained in this news release are made as of the date of this document, and, except to the extent required by applicable securities laws and regulations, Inter Pipeline assumes no obligation to update or revise forward-looking statements made herein or otherwise, whether as a result of new information, future events, or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary note.
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Inter Pipeline Fund
Director, Corporate and Investor Communications