Just Energy Income Fund Closes $330M Offering

On May 5, 2010, Just Energy Income Fund completed a public offering of $330 million aggregate principal amount of 6 per cent convertible extendible unsecured subordinated debentures. The offering was underwritten by a syndicate led by RBC Capital Markets, GMP Securities L.P. and CIBC World Markets Inc., as joint book runners, and including National Bank Financial Inc., Scotia Capital Inc. and TD Securities Inc. (collectively, the “underwriters”).

Just Energy sells natural gas and/or electricity to residential and commercial customers under long-term fixed-price and price-protected contracts. The company is part of a group of companies offering natural gas in seven states and five provinces. Just Energy used the proceeds of the offering to fund its acquisition of Hudson Parent Holdings, LLC and Hudson Energy Corp. (collectively, “Hudson”).

Hudson is a privately held energy marketing company operating in New York, New Jersey, Illinois and Texas, primarily focused on the small to mid-size commercial customer market.

Just Energy was represented in the offering in-house by Jonah Davids, VP & General Counsel, and by Burnet, Duckworth & Palmer LLP as Canadian counsel with a team that included Bill Maslechko, Jeff Oke, Scott Kearl and Michael Eldridge (securities) and Jeff Fortin and Heather DiGregorio (tax) and by McKenna Long & Aldridge LLP as US counsel with a team that included Ann-Marie McGaughey, David Brown and Kristen Beystehner; and by Dorsey & Whitney LLP as US special tax counsel.

The underwriters were represented by McCarthy Tétrault LLP as Canadian counsel with a team that included Jonathan Grant, Leila Rafi and Jennifer McGoey (securities) and Jerald Wortsman and Patrick McCay (tax) and by Gregory Davidson of Gibson, Dunn & Crutcher LLP as US counsel.