Taylor NGL Completes Equity and Debt Public Offering

On March 22, 2005, Taylor NGL Limited Partnership completed a public offering of 13 million limited partnership units at $9.25 per unit for gross proceeds of $120.25 million and $50 million principal amount of 5.85 per cent convertible unsecured subordinated debentures. The debentures, with a face value of $1,000 per debenture, mature on September 10, 2010 and are convertible into limited partnership units of Taylor at $10.35 per unit.

Taylor completed the offering to finance in part its acquisition of the Harmattan natural gas processing complex located approximately 100 km north of Calgary. The public offering was made on a bought deal basis through a syndicate of underwriters led by CIBC World Markets Inc. that included Clarus Securities Inc., National Bank Financial Inc., Peters & Co. Limited, RBC Dominion Securities Inc. and First Associates Investments Ltd.

The balance of the purchase price of the Harmattan Complex was paid with funds drawn from new credit facilities with a syndicate of lenders led by Canadian Imperial Bank of Commerce and including Royal Bank of Canada, National Bank of Canada and Alberta Treasury Branches. The new credit facilities consisted of a $120 million extendible revolving term credit facility and a $10 million extendible revolving operating credit facility.

Taylor was represented by Macleod Dixon LLP with a team that consisted of Dan Baxter, Don Tse, Darren Hribar and Kathleen Cowick (securities), Rick Borden (banking) and Craig Maurice (tax).

The underwriting syndicate was represented by Blake, Cassels & Graydon LLP with a team that consisted of Jeff Bakker, Pat Finnerty and Dan McLeod (securities) and Wanda Rumball (tax). Blakes also acted on behalf of the syndicate of lenders with a team that included Kevin Fougere.