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Clearwater to Improve Capital Structure

CANADA - Clearwater Seafoods has reported that in light of its continued strong performance, it has engaged GE Capital Markets and BMO Capital Markets to assist with the review of refinancing alternatives for its current debt facilities.

The Company is contemplating a C$65 million asset based revolving credit facility and the issuance of C$210 million in term loans.

The purpose of such a refinancing is threefold to provide an improved capital structure to support the execution of management's five-year growth plan for the business, to reduce the Company's cost of capital and to continue to build shareholder value.

The completion of the proposed financing is subject to securing commitments from potential lenders and the negotiation of satisfactory terms. Accordingly, Clearwater cannot provide any assurances at this time that commitments will be secured, and even if such commitments are secured, that the proposed refinancing will be concluded.

As part of this refinancing review, an independent appraisal of Clearwater's quotas was completed by TriNav Fisheries Consultants Inc., which placed a value on the licenses and quotas of C$453 million. As at 31 December, 2011, the book value of Clearwater's quotas and fishing rights was C$112 million.

The net book value of Clearwater's net working capital, vessels, plant and equipment when combined with the appraised value of its licenses is approximately 2.5x the value of Clearwater's total debt, providing significant excess security for Clearwater's prospective term loan lenders.

Lucy Towers

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