New energy trust comes to Canada for IPO
As an “independent energy retailer,” the company is looking to raise about $136-million. To do so, Crius adopted the trust structure, which allows it to distribute most of its income to investors, much like the old income trusts. It can do so because its assets are U.S.-based – the firm markets and sells natural gas and electricity to both residential and small and medium-sized companies south of the border.
The last company to go public with such a structure was Argent Energy Trust, which raised $212-million to buy Texas assets. Argent initially hoped to raise $325-million, but ultimately scaled back its ambitions by forgoing the purchase of some assets it originally sought.
In the year leading up to June 30, Crius had total revenues of $367-million and earnings before interest, taxes, depreciation and amortization of $54-million. The company sells electricity in 10 states, plus the District of Columbia, and natural gas in four. Its expansion plans are predicated on marketing itself in states it already operates in, as well as in new regions.
Scotia Capital and RBC Dominion Securities are co-leading the IPO, and Bennett Jones and Torys is advising on legal matters.