BC Gas closed on April 19, 2000 an issue of $125 million worth of 8 per cent Capital Securities (CAPS)—a novel hybrid debt/equity security—for sale in Canada. The CAPS represent unsecured subordinated debentures with a term of 40 years. They will be redeemable at par at the option of BC Gas after 10 years, and will be exchangeable into common shares of BC Gas at the option of the holder after 10 years. Net proceeds of the offering will be used to fund investments in subsidiaries of BC Gas. RBC Dominion Securities Inc. and a broad underwriting group assisted in the issue.
The Vancouver office of Stikeman Elliot acted for RBC Dominion Securities and the underwriting group with a team led by Jonathan Drance (corporate) with assistance from Argiro Kotsalis (corporate) and Tom Wachowski (corporate). BC Gas was represented by Elizabeth Harrison, Q.C., and Gil Malfair of Farris, Vaughan, Wills & Murphy of Vancouver.