Citadel SMaRT Fund's $190M IPO

Citadel SMaRT Fund completed a $190 million initial public offering of trust units on September 14, 2001. Merrill Lynch Canada Inc. and BMO Nesbitt Burns co-led the agency syndicate, which also included RBC Dominion Securities Inc., TD Securities Inc., CIBC World Markets Inc., National Bank Financial, Scotia Capital, Canaccord Capital Corporation, Desjardins Securities Inc., Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Lted., Yorkton Securities Inc. and Bieber Securities Inc. The fund subsequently forward sold a portion of the proceeds of the offering as a means of supporting the fund's ability to repay the cost of the trust units to unitholders on the maturity of the fund in 2013. Bloom Investment Counsel, Inc., the investment manager of the fund, will invest the remaining proceeds of the offering in a portfolio of royalty trust securities in order to generate distributions payable to unitholders over the life of the fund and to support the fund's ability to repay the cost of the trust untis to unitholders on the maturity of the fund.

Stikeman Elliott represented the fund, Bloom Investment Counsel and Citadel CPRT Management Ltd., the administrator of the fund. The Stikeman Elliott team was led by James Bruvall and included Leland Corbett and Stephen Goltz (corporate and securities) and David Weekes (tax). The agents were represented by Macleod Dixon LLP, with a team that included Kent Kufeldt, Rick Skeith and Harvey Steblyk (corporate and securities) and Ed Heakes and Darren Hueppelsheuser (tax).