• About
  • Offices
  • Careers
  • News
  • Students
  • Alumni
  • Payments
  • EN | FR
Background Image
Bennett Jones Logo
  • People
  • Expertise
  • Knowledge
  • Search
  • FR Menu
  • Search Mobile
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
View all
Practices
Corporate Litigation Regulatory Tax View all
Industries
Energy Infrastructure Mining Private Equity & Investment Funds View all
Advisory
Crisis & Risk Management Public Policy
View Client Work
International Experience
Insights News Events Subscribe
Arbitration Angle Artificial Intelligence Insights Business Law Talks Podcast Class Actions: Looking Forward Class Action Quick Takes
Economic Outlook New Energy Economy Series Quarterly Fintech Insights Quarterly M&A Insights Sustainability & the CIO
People
Offices
About
Practices
Industries
Advisory Services
Client Work
Insights
News
Events
Careers
Law Students
Alumni
Payments
Search
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
 

Cross-Border Income Trusts Gain Momentum

August 17, 2012

Argent Energy Trust closes its $212 million initial public offering. As Argent's counsel, Bennett Jones continues its dominance of cross-border income trust (CBIT) financings, sometimes known as foreign asset income trusts.

A CBIT is a Canadian yield investment product that derives its distributable cash from non-Canadian business assets – usually American. Investors anywhere may participate. CBITs are a response to the Canadian government's rules, announced in 2006, that ended the tax benefits from income trusts with Canadian assets. Investors started looking for a new vehicle that could provide healthy returns as well as the tax shelter they had lost. Richard Clark responded by launching the first CBIT – Eagle Energy Trust – in late 2010 with a $169 million IPO. Eagle was quickly followed by Parallel Energy Trust with its $393 million IPO in April of 2011. Eagle and Parallel have oil and gas assets in Texas and each recently returned to market with follow-on public offerings to finance additional acquisitions. What did these offerings have in common? Bennett Jones lawyers.

Bob McCue and David Phillips, now Bennett Jones partners, worked with Richard Clark from Eagle's beginning, This experience, combined with Bennett Jones' unique expertise and bench strength, has earned the firm a market leading position regarding CBIT transactions. Bennett Jones has been involved with virtually every CBIT that has seriously attempted to launch so far. The firm's resulting expertise should prove to be particularly valuable to its current and future CBIT and investment banking clients.

Bennett Jones is actively involved in the development of early stage CBITs as well, working with a number of management teams and investment banking firms who are currently considering this structure.

“Bob McCue and David Phillips have been trusted advisors to Eagle from the very beginning. We rely heavily upon them and the Bennett Jones team for a wide range of energy sector legal services, including tax, securities, immigration, employment and governance advice, they are responsive and effective and we appreciate all their hard work on our behalf.” - Richard Clark, President and CEO of Eagle Energy Trust

Argent Energy Trust recently closed its $212 million IPO, making it the latest publicly traded CBIT. The allure of healthy, tax efficient distributions is the primary reason for this relatively new vehicle's success to date.

Bennett Jones' CBIT success is an outgrowth of its robust tax, securities and M&A practices. The firm has been involved in four out of the five largest non-structured product Canadian IPO deals since January of 2010, including MEG Energy Corporation ($700 million) (acted for issuer), SMART Technologies (US$660 million) (acted for issuer), Gibson Energy ($568 million) (acted for issuer) and Parallel Energy Trust ($393 million) (acted for issuer).

Related Links

  • Insights
  • Media
  • Subscribe

Recent Posts

Client Work

Plains All American Executes Definitive Agreements for C$5.15 Billion Sale of NGL Business to Keyera

June 19, 2025
       

Articles

Bennett Jones on Tax Disputes: June 2025

June 18, 2025
       

Client Work

Canadian Pacific Railway Company Closes C$1.4 Billion Debt Offering

June 16, 2025
       

In The News

Canada Needs to Build Economic Resilience: Bennett Jones Economic Outlook

June 16, 2025
       

Speaking Engagements

Legacy Builders Live Webcast

June 12, 2025
       

Client Work

Bennett Jones Acts for Dow Chemical in Successful $3.56 Billion Contract Claim

June 11, 2025
       

Speaking Engagements

Uncovering the CETA Opportunity

June 11, 2025
       

Client Work

DCM Group, a Thrust Capital Partners Portfolio Company, Acquires Metcor

June 09, 2025
       

Updates

Economic Outlook: Building Resilience and Capacity in a Disrupted World

June 2025
       
Bennett Jones Centennial Footer
Bennett Jones Centennial Footer
About
  • Leadership
  • Diversity
  • Community
  • Innovation
  • Security
Offices
  • Calgary
  • Edmonton
  • Montréal
  • Ottawa
  • Toronto
  • Vancouver
  • New York
Connect
  • Insights
  • News
  • Events
  • Careers
  • Students
  • Alumni
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
© Bennett Jones LLP 2025. All rights reserved.
  • Privacy Policy
  • Disclaimer
  • Terms of Use
Logo Bennett Jones