NEWS RELEASE
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES
TERANET INCOME FUND FILES FINAL PROSPECTUS FOR INITIAL PUBLIC OFFERING OF UNITS
Toronto, June 9, 2006 — Teranet Income Fund (the "Fund") and Teranet Inc. ("Teranet") announced today that the Fund has filed a final prospectus with the securities regulatory authorities in each of the provinces and territories of Canada in connection with the initial public offering of 70,000,000 units of the Fund at a price of $10.00 per unit resulting in gross proceeds of $700,000,000. Based on the offering size and price, the units are expected to make monthly distributions representing an initial annualized yield of 7.5%. The Fund has granted to the underwriters an option to purchase up to an additional 10.5 million units at the offering price for a period expiring 30 days following the closing to cover over-allotments, if any, and for market stabilization purposes.
The Fund has received conditional approval for the listing of its units on the Toronto Stock Exchange ("TSX") under the symbol "TF.UN", subject to fulfilling all of the requirements of the TSX. The initial public offering is expected to close on or about June 16, 2006.
On closing, the Fund will acquire Teranet, which is a leading provider of integrated land-based information products and services. A substantial portion of the net proceeds of the offering will be paid to the Province of Ontario pursuant to the terms of financial arrangements as required under the Participation and Ownership Restriction Termination Agreement dated May 8, 2006. The balance of net proceeds will be used to repay existing indebtedness and to fund working capital and other reserves for Teranet.
On closing, the Fund will hold 100% interest in Teranet on a fully diluted basis, with the public owning approximately 45.2% of the units, former Teranet shareholders, directly or indirectly holding approximately 44.3% of the units, and two financial institutions, which have been appointed as designees by the Province, each owning approximately 5.25% of the units, in each case assuming the exchange of securities held by certain of the former Teranet shareholders into units.
The offering is being underwritten by a syndicate of underwriters co-led by RBC Capital Markets and CIBC World Markets Inc.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement of such Act. This press release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of these securities in any province, state, or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state, or jurisdiction.
ABOUT TERANET
Teranet is a leading provider of integrated land-based information products and services. Teranet operates in Ontario and provides access to the Ontario Electronic Land Registration System ("ELRS") through its proprietary software application Teraview. This product enables customers to conduct electronic registrations as well as title and writ searches relating to real property. Teranet has the exclusive right to access the data in and operate the ELRS and the Writs of Execution database, and create and market value-added products and services in connection with the ELRS and writs until March 31, 2017. Teranet has leveraged its core capabilities to create electronic service offerings in complementary information and e-commerce areas.
Contact:
Bonnie Foster, Vice President Corporate Communications
416-643-1095
bonnie.foster@teranet.ca
www.teranet.ca