Energy Split Completes IPO

On September 18, 2003, Energy Split Corp. Inc. completed an initial public offering of 1.549 million ROC preferred shares and 3.098 million capital yield shares, at $25 per ROC preferred share and $11.50 per capital yield share for gross proceeds of $74.352 million. The offering was made through a syndicate of agents led by Scotia Capital Inc., and included BMO Nesbitt Burns Inc., National Bank Financial Inc., Canaccord Capital Corporation, Desjardins Securities Inc, First Associates Investments Inc., HSBC Securities (Canada) Inc. and Raymond James Ltd.

The net proceeds of the offering will be invested in a portfolio consisting primarily of common shares of Canadian public companies, which will be sold to a counterparty under a forward agreement pursuant to which the counterparty agrees to pay to Energy Split the economic return provided by a fixed portfolio consisting of 17 oil and gas royalty trusts. Energy Split was created in order to generate fixed cumulative preferential tax efficient distributions for the holders of the ROC preferred shares and to enable the holders of the capital yield shares to receive leveraged tax efficient distributions.

Energy Split and the agents were represented by Stikeman Elliott LLP, with a team that included Joel Binder, Philip Henderson, Steven Portelli and Jason Wilson (securities/corporate) and John Lorito (tax)