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Press release from CNW Group


Wednesday, September 29, 2010

FORT CHICAGO POWER LTD. TO REDEEM 6.25% EXCHANGEABLE UNSECURED SUBORDINATED DEBENTURES17:00 EDT Wednesday, September 29, 2010/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./ << Trading Symbols: FCE.UN, FCL.DB.U Exchange: TSX >> CALGARY, Sept. 29 /CNW/ - Fort Chicago Energy Partners L.P. ("Fort Chicago") and its indirect wholly-owned subsidiary, Fort Chicago Power Ltd. ("Fort Chicago Power"), announced today that Fort Chicago Power has given notice of the exercise of its right to redeem all of its 6.25% exchangeable unsecured subordinated debentures due October 31, 2012 (the "Exchangeable Debentures") which remain outstanding on October 31, 2010 (the "Redemption Date"). The Exchangeable Debentures are redeemable in whole or in part at the option of Fort Chicago Power on or after October 31, 2010. The redemption price of U.S.$1,031.25 for each U.S.$1,000 principal amount of the Exchangeable Debentures, being equal to U.S.$1,000 (100% of their principal amount) plus accrued and unpaid interest thereon to, but excluding, the Redemption Date (interest calculated and paid in U.S. Dollars), less any applicable taxes, will be paid in cash on the Redemption Date. Interest on the Exchangeable Debentures will cease to accrue from and after the Redemption Date. There is currently U.S.$22,134,000 aggregate principal amount of Exchangeable Debentures outstanding.The notice of redemption given by Fort Chicago Power in connection with the redemption of the Exchangeable Debentures also contains a notice of expiry of exchange privilege. The Exchangeable Debentures will remain exchangeable in accordance with their terms at the option of the holders thereof until 5:00 p.m. (Toronto time) on October 29, 2010 (the "Time of Expiry"). Each U.S.$1,000 principal amount of Exchangeable Debentures may be exchanged at a price equal to C$1,051.09 plus accrued and unpaid interest thereon to, but excluding, the date of exchange (interest calculated and paid in U.S. Dollars), less any applicable taxes. Any Exchangeable Debentures not exchanged at or before the Time of Expiry will be redeemed by Fort Chicago Power on the Redemption Date.Fort Chicago and Fort Chicago PowerFort Chicago is a publicly traded limited partnership based in Calgary, Alberta, that owns and operates energy infrastructure assets across North America. Its Class A Units are listed on the Toronto Stock Exchange (the "TSX") under the symbol FCE.UN and its 6.75% convertible unsecured subordinated debentures, Series B and 5.75% convertible unsecured subordinated debentures, Series C are listed on the TSX under the symbols FCE.DB.B and FCE.DB.C, respectively. Fort Chicago is engaged in three principal businesses: a pipeline transportation business comprised of interests in two pipeline systems, the Alliance Pipeline and the Alberta Ethane Gathering System; an NGL extraction business which includes an interest in a world-class extraction facility near Chicago; and a power business with power facilities in Ontario, New York, Colorado and California, district energy systems in Ontario and Prince Edward Island, waste heat power facilities along the Alliance Pipeline in Saskatchewan and renewable power projects in British Columbia. Fort Chicago and each of its pipeline, NGL extraction and power businesses are also actively developing a number of greenfield investment opportunities that will be a key source of future growth. In the normal course of its business, Fort Chicago and each of its businesses regularly evaluate and pursue acquisition and development opportunities.Fort Chicago's power business is carried on in part by Fort Chicago Power and certain direct and indirect subsidiaries of Fort Chicago Power. The only securities of Fort Chicago Power listed on the TSX are the Exchangeable Debentures which trade under the symbol FCL.DB.U. << Class A Unit Ownership Restrictions >> Fort Chicago is organized in accordance with the terms and conditions of a limited partnership agreement which provides that no Class A Units may be held by or transferred to, among others, a person who is a "non-resident" of Canada, a person in which an interest would be a "tax shelter investment" or a partnership which is not a "Canadian partnership", in each case for purposes of the Income Tax Act (Canada). This restriction will not apply to the securities of Fort Chicago following the conversion of Fort Chicago into a corporation.Certain information contained herein relating to, but not limited to, Fort Chicago and its businesses and the redemption of the Exchangeable Debentures, constitutes forward-looking information under applicable securities laws. All statements, other than statements of historical fact, which address activities, events or developments that Fort Chicago expects or anticipates may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as "may", "estimate", "anticipate", "believe", "expect", "plan", "intend", "target", "project", "forecast" or similar words suggesting future outcomes or outlook. Forward-looking statements in this news release include, but are not limited to, the intention to redeem the Exchangeable Debentures. Additional information on risks, uncertainties and factors that could affect Fort Chicago's operations or financial results is included in its filings with the securities commissions or similar authorities in each of the provinces of Canada, as may be updated from time to time. Readers are also cautioned that such additional information is not exhaustive. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these factors are independent and management's future course of action would depend on its assessment of all information at that time. Although Fort Chicago believes that the expectations conveyed by the forward-looking information are reasonable based on information available on the date of preparation, no assurances can be given as to future results, levels of activity and achievements. Undue reliance should not be placed on the information contained herein, as actual results achieved will vary from the information provided herein and the variations may be material. Fort Chicago makes no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking statements contained herein are made as of the date hereof, and Fort Chicago does not undertake any obligation to update publicly or to revise any forward-looking information, whether as a result of new information, future events or otherwise. Any forward-looking information contained herein is expressly qualified by this cautionary statement.For further information: Stephen H. White, President and C.E.O.; Richard G. Weech, Vice President, Finance and C.F.O., Fort Chicago Energy Partners L.P., Livingston Place, Suite 440, 222 - 3rd Avenue S.W., Calgary, AB T2P 0B4, Phone: (403) 296-0140, Fax: (403) 213-3648,