Trilogy Energy Trust cancels planned offering of convertibles

By Angela McDaniels

Seattle, Nov. 10 - Trilogy Energy Trust will not proceed with its planned public offering of C$175 million 6.25% convertible subordinated unsecured debentures due 2011, according to a trust news release.

The announcement follows Canadian federal minister of finance Jim Flaherty's plan to begin taxing existing income trusts by 2011 and the impact of the proposal on the trading price of Trilogy's trust units, which fell to C$11.19 on Friday (Toronto: TET) from C$12.50 on Monday. The proposal was passed by Parliament on Tuesday.

The trust said it planned to use proceeds of the offering to repay debt outstanding under its credit facility and to repay the C$77.4 million outstanding under its acquisition facility.

The Calgary, Alta.-based petroleum and natural gas energy trust first announced the offering on Oct. 19.

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