Distress Preferred Share Financing for the Chapais Power Project in Quebec

Douglas R. Scott, William J. Bies and Jeffrey A. Legault of Fasken Martineau DuMolin’s Toronto office recently acted for Probyn Inc. the developer of the Chapais Power Project in Quebec. The existing $61 million dollars of financing on the Project was refinanced through the issue of distress preferred shares. KPMG (Calgary) were the investment advisor with Clarica Life Insurance Company as lead financier and agent for a syndicate of life insurance companies. The transaction closed December 6, 1999. McCarthy Tétrault acted for Clarica and the syndicate. The McCarthy’s team was comprised of David A.N. Lever (corporate), Daryl E. McLean (corporate), J. Stephen Furlan (corporate), James G. Morand (tax) and Daniela C. Dos Santos (corporate). Also assisting was John T. Sullivan (corporate) of McCarthy Tétrault’s Montreal office.