SCITI Trust II Completes IPO

On October 29, 2003, SCITI Turst II, an investment trust, completed an initial public offering of 10 million units at $10 per unit for gross proceeds of $100 million. The offering was made through a syndicate of agents led by Scotia Capital Inc., and included National Bank Financial Inc., TD Securities Inc., Dundee Securities Corporation, HSBC Securities (Canada) Inc., Canaccord Capital Corporation and Raymond James Ltd.

The net proceeds of the offering together with an amount advanced under a loan facility provided by The Bank of Nova Scotia, will be invested in a portfolio of Canadian income funds that reflect the make-up and weighting of the Scotia Capital Income Trust Index as adjusted to exclude any income fund having a float capitalization of less than $200 million. Investors were provided with the opportunity to subscribe for units either in cash or by depositing units of the underlying Canadian income funds that will form the trust’s portfolio pursuant to an exchange option.

The Trust and the agents were represented by Stikeman Elliott LLP, with a team that included Joel Binder and Steven Portelli (securities/corporate), Mark McElheran (banking) and John Lorito (tax). The Bank of Nova Scotia was represented by Fasken Martineau DuMoulin LLP, with a team that included John Torrey and Thomas Meagher.