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Eagle Energy Trust completes initial public offering

Date Closed

December 21, 2010

Lead Office

Calgary

Value

169.50 Million CAD

On November 24, 2010, Eagle Energy Trust (“Eagle”) completed its initial public offering of 15,000,000 trust units at a price of C$10.00 per unit for a total offering of C$150 million.  Concurrently with the closing of the initial public offering, Eagle also closed the acquisition of a 73% working interest in the Salt Flat Field, a producing light oil field in south central Texas. 

The offering was underwritten by a syndicate of underwriters led by Scotia Capital Inc. and included BMO Nesbitt Burns Inc., CIBC World Markets Inc. TD Securities Inc., National Bank Financial Inc., Dundee Securities Corporation, Canaccord Genuity Corp., FirstEnergy Capital Corp., GMP Securities L.P., HSBC Securities (Canada) Inc. and Raymond James Ltd. 

Subsequently on December 16, 2010 and December 21, 2010, the over-allotment option was exercised by the underwriters resulting in the offering of an additional 1,950,000 units at the offering price of C$10.00 per unit resulting in additional proceeds of C$19,500,000.

This initial public offering is the first public offering of an income fund since the introduction of the SIFT taxation rules by the Minister of Finance (Canada) on October 31, 2006.  Eagle is designed to fall outside the SIFT rules as the result of owning non-Canadian oil and gas assets.  Eagle's public offering is a precedent setting capital markets development that points toward an expansion of the universe of tax efficient yield producing investments available to Canadian investors.

McCarthy Tétrault LLP represented Eagle Energy Trust, the issuer, with a team led by Robert McCue.