Income and Growth Split Trust Completes IPO

On November 17, 2004, Income and Growth Split Trust, a closed-end investment trust, completed its initial public offering of units and 6.25 per cent preferred securities. Including the over-allotment, a total of 5,545,000 units were issued at $15 per unit and a total of 5,545,000 preferred securities were issued at $10 per preferred security for total gross proceeds of approximately $138 million. The offering was led by CIBC World Markets Inc. and the syndicate included BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Dundee Securities Corp., First Associates Investments Inc., HSBC Securities (Canada) Inc., Raymond James Ltd., Canaccord Capital Corp., Desjardins Securities Inc. and Wellington West Capital Inc.

The net proceeds of the offering were invested in a portfolio of dividend paying equities and of Canadian income trusts and funds, comprised primarily of business and industrial funds, commodity-based royalty trusts, real estate investment trusts and pipeline and power generation funds.

The Trust was created using a dual security structure, consisting of the units and the preferred securities, to provide investors with greater ability to choose the tax character of distributions they will receive from the underlying income trust portfolio. An investment in the units maximizes the tax deferral available for non-registered accounts, while the preferred securities offer a highly-rated security with an attractive rate of interest for registered plans. The Trust will invest its assets in securities of Canadian income funds.

The manager of the Trust is Faircourt Asset Management Inc and the investment advisor to the Trust is Acuity Investment Management Inc.

The Trust and the manager of the Trust was represented by Stikeman Elliott LLP, with a team that included Jennifer Northcote, Greg Hogan and Colin Levere (securities/corporate), and Lianne Miller (tax).

The agents were represented by McCarthy T├ętrault LLP, with a team that included Ronald Schwass, Andrew Armstrong and Wendi Locke (securities/corporate) and Nigel Johnston (tax).