Threshold Power Said to Seek $140 Million IPO

Threshold Power Trust is seeking about C$145 million ($140 million) in a Canadian initial public offering to invest in U.S. wind projects, according to two people with direct knowledge of the transaction.

Threshold Power will sell trust units for C$10 each and use the money to buy stakes in nine wind-power projects from a JPMorgan Chase & Co. affiliate, KEF Equity Investment Corp. and Energias de Portugal SA’s EDP Renewables North America unit for $120 million, according to a July 4 regulatory filing. The sale will be priced in the first week of August, said the people, who asked not to be identified because terms aren’t public.

The trust will trade on the Toronto Stock Exchange after the sale is completed, according to the filing. A telephone message left with Threshold Power Chief Executive Officer Susan Nickey at her Chicago office to confirm the price wasn’t immediately returned.

Threshold Power adopted a corporate structure known as a foreign-asset income trust, which distributes most of its cash flow to investors in monthly payouts and has all of its assets outside Canada. Other companies that used this structure include Argent Energy Trust, the Calgary-based firm that raised C$212.3 million in an IPO last year, as well as Parallel Energy Trust and Eagle Energy Trust.

Canadian Imperial Bank of Commerce, Bank of Nova Scotia, National Bank of Canada and Stifel Nicolaus Canada Inc. are leading the sale, the Toronto-based trust said in a July 5 statement.

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