Fort Chicago Completes Private Placement of 15-year Notes

On May 4, 2005, Alberta Ethane Gathering System LP, an indirect subsidiary partnership of Fort Chicago Energy Partners LP (one of Canada's largest publicly traded “income trusts,” with investments in long-life energy infrastructure assets), completed a private placement of 15-year 5.565 per cent senior notes due May 4, 2020, in the aggregate principal of $110 million with Canadian institutional lenders. The notes are direct unsecured obligations of Alberta Ethane Gathering System LP and rank equally with all other unsecured and unsubordinated indebtedness of the issuer. The proceeds from the debt offering were used to reduce outstanding indebtedness incurred to finance the acquisition of the Alberta Ethane Gathering System.

The senior notes offering was led by Scotia Capital Inc., as book-running manager, who formed an underwriting syndicate on this offering with TD Securities Inc.

The transaction was led in-house by Hume Kyle, vice-president, finance and chief financial officer, and Kevan King, vice-president, general counsel and secretary, of Fort Chicago Energy Management Ltd., with the assistance of a team from Bennett Jones LLP comprised of Renee Ratke (securities), Phil Backman, Mitch Williams and Shaheen Amirali (debt financing), and Brent Kraus and Michael Klym (securities).

The underwriting syndicate was represented by Blake, Cassels & Graydon LLP with a team that included Pat Finnerty (securities), Warren Nishimura (debt financing), Ross Bentley (securities) and Anoop Dogra (securities).