Energy Plus Income Trust Announces Payment of Termination Fee Prior to Merger
with Sustainable Production Energy Trust
TORONTO, Sept. 16 /CNW/ - Energy Plus Income Trust (TSX: EPF.UN) ("Energy Plus") announced today that Energy Plus will pay a termination fee to the administrator of Energy Plus, 2223785 Ontario Inc. (the "Administrator"), an affiliate of Crown Hill Capital Corporation, the administrative agent of Energy Plus and the manager and trustee of the Continuing Fund) (the "Termination Fee") calculated by a formula approved by the independent review committee of Energy Plus. The Termination Fee will be paid immediately prior to the merger (the "Merger") of Energy Plus and CGF Resource 2008 Flow Through Limited Partnership ("CGF", CGF and Energy Plus, the "Merging Funds") with Sustainable Production Energy Trust (TSX: SPU.UN) ("Sustainable"), the continuing entity to be named Energy Income Fund (the "Continuing Fund"). The effective date of the Merger is expected to occur on or about October 4, 2010, or such other date determined by the Administrative Agent (the "Effective Date").
The Termination Fee will be paid by Energy Plus to the Administrator in cash. The Termination Fee will be calculated on a pro forma basis, based on an estimate of the value of two years of the administrative fee (the "Administrative Services Fee") multiplied by the percentage of units redeemed by the Energy Plus unitholders pursuant to the Cash Alternative (as defined below). The Administrative Services Fee for each year of service is equal to 1.10% of the average net asset value of the Energy Plus and, therefore, the Termination Fee would be equal to 2.2% of the net asset value at the close of business on the business day immediately prior to the Effective Date (the "Calculation Date") multiplied by the percentage of units redeemed by the Energy Plus unitholders pursuant to the Cash Alternative (as defined below). For example, if Energy Plus unitholders redeem 20% of outstanding units pursuant to the Cash Alternative, the Termination Fee will be 20% of 2.2% of the net asset value of Energy Plus on the Calculation Date (equal to 0.44% of the net asset value on the Calculation Date).
The Cash Alternative
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Unitholders of Energy Plus who do not wish to remain unitholders of the Continuing Fund may have their units redeemed for an amount in cash equal to 100% of the net asset value per unit of their units of the Continuing Fund determined on the close of business on the Effective Date (the "Cash Alternative"). In order to receive the Cash Alternative, unitholders of Energy Plus must ensure that their request for redemption of the units of the Continuing Fund are received by no later of the close of business on Monday, September 27, 2010. Please note that if you exercise the right to receive the Cash Alternative you are not obliged to exercise such right in respect of all units of the Continuing Fund that you own.
Payment in respect of the Cash Alternative will be made as soon as practically possible and in any event no later than one week after the Effective Date, on a business day to be determined by the manager of the Continuing Fund and announced by a press release. The Continuing Fund will pay interest calculated at the prime rate on all amounts payable to Unitholders redeeming pursuant to the Cash Alternative.
Certain statements contained in this press release may include forward-looking information with respect to Energy Plus and the Continuing Fund's operations and future financial results. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. Further information can be found in the disclosure documents filed by the Energy Plus at www.sedar.com.
%SEDAR: 00021226E
For further information: Citadel Funds at 1-877-261-9674 or visit our website at www.citadelfunds.com
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