Pacifica Power Purchase

On February 2, 2001, Pacifica Papers Inc. sold 100 per cent of the shares of its hydro-electric subsidiary Pacifica Power Co. Ltd., to Powell River Energy Inc. for $100 million and a 50.1 per cent economic interest in Powell River Energy Inc. The remaining 49.9 per cent is owned by Great Lakes Hydro Income Fund.

Powell River Energy Inc.’s purchase was financed by way of senior debt provided by CIBC World Markets and Canadian Western Bank and junior debt provided by Trilon Bancorp Inc.

Acting for Pacifica Papers were Harj Sangra, Kim Moller and Janie Tremblay of Sangra, Moller. The Torys team acting for Great Lakes on the purchase transaction and as consortium counsel on the financing included Jonathan Weisz, Bill Charnetski, Karrin Powys-Lybbe and Shawn Beber, with guidance from Phil Brown. Blake, Cassels & Graydon LLP represented CIBC World Markets with a team that included Joanne Payne, Greg Umbach, Neal Wang and Richard Sarabando. Torys and Blakes both advised Trilon Bancorp Inc. on certain matters. Assisting Great Lakes on matters pertaining to B.C. law were Nicolaas Blom, Donna Cooke, Robin Sirett, Brian Vick and Gabe Somjen of McCarthy Tétrault.