Harvest Energy Trust Completes $638M Financing

On November 22, 2006 Harvest Energy Trust completed an equity and convertible debenture financing, issuing 9,499,000 trust units at $27.25 per trust unit and $379,500,000 principal amount of 7.25 per cent convertible unsecured subordinated debentures for approximate gross proceeds of $638 million, including the full exercise by the underwriters of their over-allotment option. Harvest is one of Canada's largest energy trusts offering exposure to both upstream and downstream operations. The net proceeds from this financing were used principally to repay indebtedness incurred to fund the acquisition of North Atlantic Refining Limited.

The financing was underwritten by a syndicate led by CIBC World Markets Inc. and TD Securities Inc., and including RBC Dominion Securities Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., HSBC Securities (Canada) Inc., National Bank Financial Inc., FirstEnergy Capital Corp. and Canaccord Capital Corporation.

Harvest was represented by Burnet, Duckworth & Palmer LLP with a team that included Grant Zawalsky, Keith Greenfield and Spencer Coupland (securities), Cal Johnson, Q.C. (banking), and Jeff Fortin (tax).

The underwriting syndicate was represented by Macleod Dixon LLP with a team that included Robert Engbloom, Q.C., Kent Kufeldt, Jamie Gagner and Kirsty Sklar (securities) and Darren Hueppelsheuser (tax).