Boralex Power Income Fund Completes IPO

Boralex Power Income Fund, a Montreal-based unincorporated open-ended trust that owns, operates and manages eight power-generating stations in Quebec, completed an initial public offering of its income fund units on February 20, 2002. Along with the exercise of the over-allotment option on February 27, 2002, the fund raised a total of $268 million. The fund’s units are listed on the TSE. Credit facilities in the aggregate maximum amount of $40 million were also made available to the fund.

Proceeds from such financings were used by the fund to acquire, from Boralex Inc. and a related entity, eight power-generating facilities located in Quebec, which produce from different sources, including wood residue, natural gas and hydro. Together, these power facilities have an installed capacity of 131 megawatts.

Administration and management agreements were put in place with affiliates of Boralex Inc., which will provide the fund with certain administrative and support services, and will supervise the operations and maintenance of the facilities.

The fund was represented by in-house counsel Robert Hall, Michèle Beauchamp and Jean-Pierre Archambault, and by Fraser Milner Casgrain LLP with a team comprised of Charles Spector, Vitale Santoro, Valery Zamuner, Kiriakos Vanikiotis and Pierre Setlakwe (real estate) and Karine Charest, Warren Albert, Jean Gagnon and Richard Gauthier (tax).

National Bank Financial Inc. and BMO Nesbitt Burns Inc. co-led the underwriting syndicate that included TD Securities Inc., Scotia Capital Inc., CIBC World Markets Inc., Desjardins Securities Inc. and FirstEnergy Capital Corp. The underwriters were represented by Stikeman Elliott, with a team including Jean-Marc Huot, J. Anthony Penhale, Benoît Dubord, Pierre-Yves Leduc, Jason Streicher and Annie Lagacé; Robert Hogan and Marie Andrée Beaudry (tax); Jean Carrier (environment); and Bertrand Ménard and Michèle Baillargeon (real estate).

The lenders were National Bank of Canada and Bank of Montreal, represented by Jean Lamothe and Natalie Gosselin, also of Stikeman Elliott.