Noranda Income Fund Unit T.NIF.UN

RE:RE:sea change to value of NIF

[Bigbird999]

My opinion is that the promissory note will be created in May next year for the $30 odd million-plus the fund owes to GC, but that the money isn't going to be paid until the distributions return back up to the base amount of $1 per year.  Since GC will earn distributions then too, that means the fund has to have $50 million in distributable cash per year (or pro rata per month) before they have to pay on the promissory. I could be wrong...

I believe this was previoously confirmed.  If you dig into the annual filings on SEDAR this is addressed on Page 50 "Distributions"

It appears (but is not totally clear) that Glencore's ordinary units will convert to priority units in May-17.  After that they will receive distributions like us.  So an extra $3. 6 million at the current 30 cent per year rate. GC also receiveswaht was described as "a very low seniority" promissary note for the accumulated deficiency (about $30 million) which is only payable when the  distribution exeeds $50 million per year.  So in essence the distribution shareholders is capped at $1 per year as any excess will be applied against the promissary note.

Friday morning should be fun.....

BB