The Consumers’ Waterheater Income Fund and The Consumers’ Waterheater Operating Trust Announce Closing of $275 Million Credit Facility

TORONTO, ONTARIO–(Marketwire – Dec. 21, 2009) – The Consumers' Waterheater Income Fund ("Fund") (TSX:CWI.UN) and its wholly-owned subsidiary, The Consumers' Waterheater Operating Trust ("Trust"), today announced that the Trust has closed its previously announced $275 million senior credit facility ("Credit Facility") with The Toronto-Dominion Bank, as administrative agent and sole lead arranger and bookrunner, and The Bank of Nova Scotia, HSBC Bank Canada and Caisse Centrale Desjardins, comprising a $240 million non-revolving bridge facility ("Bridge") and a $35 million revolving facility ("New Revolver").

Bridge Loan Facility

The Bridge is available to be drawn on or before January 28, 2010. If drawn, the proceeds will be used by the Trust to refinance the $225 million Series 2003-1 A-2 Secured which are due to be repaid on January 28, 2010 and to repay a portion of the drawings under the Trust's $50 million revolving line of credit.

The Bridge maturity date is January 28, 2011. Voluntary prepayments are permitted at any time without premium or penalty. The Bridge ranks equally and rateably with the Trust's outstanding senior notes.

The Bridge bears interest at a rate of bankers' acceptances ("BAs") plus 275 basis points, based on a debt rating of "A", and subject to an increase of 37.5 basis points if funds drawn under the Bridge are still outstanding 180 days after the closing, and a further 37.5 basis points if funds drawn under the Bridge are still outstanding 270 days after the closing. Based on the underlying BA rate on December 18, 2009, the interest rate on the Bridge would be approximately 3%.

New Revolver Loan Facility

The New Revolver is for working capital and general trust/corporate purposes, and is available to be drawn in the period until maturity on January 28, 2013. The New Revolver ranks equally and rateably with the Trust's outstanding senior notes.

The Revolver bears interest at a rate of BAs plus 275 basis points, based on a debt rating of "A", and the standby fee for undrawn amounts is 30% of the applicable margin.

Conditions to drawdown for each facility are typical for transactions of this type. Covenants are typical for transactions of this type, and include limitations on payments by the Trust to the Fund, limitations on acquisitions by the Trust and prior approval by the lenders of any corporate reorganization. There are also a number of financial covenants that must be met.

About The Consumers' Waterheater Income Fund

The Fund owns a portfolio of approximately 1.3 million installed water heaters and other assets, rented primarily to residential customers in Ontario. The Fund also owns Stratacon Inc., a leading "smart" sub-metering company, with contracts for condominium and apartment suites in Ontario, Alberta and elsewhere in Canada.

Additional information regarding the Fund and the Trust, including the current Annual Information Forms, is available on SEDAR at www.sedar.com. Additional information on our Sub-metering business is available at www.stratacon.ca.