Innergex Power Income Fund Completes IPO

Innergex Power Income Fund, a Montreal-based unincorporated limited purpose trust, completed an initial public offering of its units on July 4, 2003. Total value of the transaction is $236 million, and includes an initial public offering of units totalling $142 million, private placements totalling $39 million and a further $55 million through a term loan. Proceeds from the offering and the financing were used by Innergex Power Income Fund to indirectly acquire seven hydroelectric power generating facilities, six of which are located in Quebec and one in Ontario.

Innergex Power Income Fund and Innergex Power Trust, a trust it holds, will be administered and managed by Innergex Management Inc. To ensure further growth, Innergex Power Trust has also established a long-term privileged co-operation relationship with Innergex II Power Income Fund, with respect to projects, which are to be developed by the developing arm of the Innergex group, Innergex II Power Income Fund whose institutional sponsors are Sun Life Financial, TD Bank, CDPQ Capital d’Amérique Inc., Desjardins and Kruger Pension Fund.

Innergex Power Income Fund, its affiliates and Innergex II Power Income Fund were represented by McCarthy Tétrault LLP, with a team led by Marc Dorion, Q.C., and including Jean-René Gauthier and Philippe Leclerc (securities), Marc Lemieux (banking), Kim Thomassin (commercial transactions) and Steven Baum and Nigel Johnston (tax), who also represented IHI Hydro Inc., a wholly owned subsidiary of TD Bank on tax matters, and also represented by Gordon Willcocks, Tallat Hussain, Seán O’Neill and Greg McNab (Ontario transactions), Pierre Boivin, Pascal Paradis and Doris Dion (corporate/commercial), Philippe Fortier (commercial/securities), Yves Comtois (competition), Vanessa Dumoulin (environment), Danielle Drolet (real estate), Philippe Boivin (intellectual property) and Michel Bergeron (translation). Innergex was also represented by in-house counsel Diane-Marie Gauthier.

CDPQ Capital d’Amérique was represented by in-house counsel Guy Lebeuf. The remaining minority stakeholder, IHI Hydro, was represented by Alain Roberge and Patrice Beaudin (commercial) of Davies Ward Phillips & Vineberg LLP.

BMO Nesbitt Burns Inc. and TD Securities Inc. co-led the underwriting syndicate, which included CIBC World Markets Inc., Desjardins Securities Inc., RBC Dominion Securities Inc. and Scotia Capital Inc. Bank of Montreal and TD Bank provided financing to the trust. The underwriters and term loan lenders were represented by Borden Ladner Gervais LLP, with a team led by John Godber and Benoît Provost, and including Frank Allen (securities), Claudine Millette and Daniel Gendron (banking), Sylvie Bouvette (real estate/environment), Tammy Shulman and Patricia Galella (corporate/commercial), Frédéric Chatel (securities), Rick Morelli (Ontario transactions) and Craig Webster (tax).

Two of the selling stakeholders, McGill Pension Fund and STM Pension Fund, were represented by Viateur Chénard and Valérie Mac-Seing of Stikeman Elliott LLP.