News
Toronto, December 20, 2007 – Edenbrook Hill Capital Ltd., Co-Financial Arranger to Skeena Capital Trust, is pleased to announce the successful completion of the restructuring of Skeena Capital Trust (“Skeena”). This is the first complete restructuring of a Canadian asset backed commercial paper (“ABCP”) conduit affected by the August, 2007 liquidity issue. As a result of this restructuring, noteholders of Class A liquidity backed commercial paper, Class E extendible commercial paper and Class F floating rate medium term notes of Skeena Capital Trust have received repayment of approximately $2.1 billion, equivalent to approximately 98.7% of principal and interest as of August 15th, 2007.
Mr. Mark Adams, President of Edenbrook, said “We have always been committed to protecting the interests of Skeena’s investors, and we are pleased to have had the opportunity to contribute to the first restructuring of an affected ABCP conduit. In addition, we have consistently worked to ensure that Skeena’s transactions were uniquely designed, as well as fundamentally sound from both credit and structuring perspectives. The fundamental soundness of the transactions provided a basis for the restructuring that has occurred.”
Edenbrook would like to take the opportunity to sincerely thank Skeena’s investors for their patience and support throughout the restructuring process. Edenbrook would also like to thank the Pan-Canadian Investors Committee, Dundee Securities Corporation, ABN AMRO Bank, Bank of Nova Scotia, and all other restructuring participants for their cooperation and support during the restructuring process.
For further information, contact:
Edenbrook Hill Capital Ltd.
(416) 815-8100
Edenbrook Hill Capital Ltd., Co-Financial Arranger to Skeena Capital Trust, is pleased to announce that an information package has been mailed to noteholders of Skeena Capital Trust by the Administrative Agent to Skeena Capital Trust, Dundee Securities Corporation.
The information package describes the proposed terms of the restructuring of the “A” notes, “E” notes and term floating rate notes held by investors of Skeena Capital Trust, and representing a total of approximately $2.1 billion of notes outstanding. It also includes a valuation report on Skeena Capital Trust prepared by JP Morgan, financial advisor to the Investors Committee as well as information from the rating agency DBRS.
Skeena noteholders have until 5:00 p.m. (EST) on December 17, 2007 to communicate their intention to Dundee Securities Corporation as described in the information package. The redemption of the notes is expected to be completed by no later than December 19, 2007.
For further information, contact:
Edenbrook Hill Capital Ltd.(416) 815-8100
or
Geoff Sinclair
Dundee Securities Corporation
(416) 840-8155
On October 16th, 2007, the Pan Canadian Investors Committee announced a restructuring of Skeena Capital Trust ("Skeena"). Edenbrook Hill Capital Ltd. ("Edenbrook") is a Co-Financial Arranger to Skeena. Dundee Securities Corporation is also a Co-Financial Arranger and the Administrative Agent of Skeena.
Edenbrook has been deeply concerned about protecting the interests of Skeena’s investors and is pleased to participate in the restructuring process. Edenbrook would like to thank the Pan Canadian Investors Committee, the bank counterparties which provided assets to Skeena and investors in Skeena for working towards a proposed solution that Edenbrook believes will help protect the interests of Skeena's investors.
Mr. Mark Adams, President of Edenbrook said, "We believe the transactions in Skeena were fundamentally sound from both credit and structuring perspectives. We also believe that the quality of the underlying transactions and structuring, along with the efforts of the Pan Canadian Investors Committee, our bank counterparties and our investors, have allowed the presentation of a proposal that should maximize the value for investors in Skeena Capital Trust."
The proposed restructuring is subject to the execution of definitive documentation, due diligence and certain conditions including the final placement and rating of the new notes that will be issued by a new trust that will be established as part of the proposed restructuring and is expected to be completed by, or shortly after, the end of October 2007. Investors in Skeena will be sent further information regarding the terms of the proposed restructuring within the next several days, including the timing and manner of payment for their existing notes.
For further information, contact:
Edenbrook Hill Capital Ltd.(416) 815-8100
or
Geoff Sinclair
Dundee Securities Corporation
(416) 840-8155
Toronto, October 16 – Note holders in Skeena Capital Trust will be receiving a return of their capital and, net of certain costs of the proposed restructuring, payment of accrued interest under the terms of an agreement in principle announced today for the restructuring of Skeena Capital Trust. The agreement was negotiated among Skeena’s Administrative Agent, Dundee Securities Corporation, its Co-Financial Arrangers, Edenbrook Hill Capital and Dundee Securities Corporation, the bank counterparties which provided assets to Skeena, as well as the Pan Canadian Investors Committee chaired by Purdy Crawford.
Under the proposed restructuring plan, all $2.1 billion of notes outstanding, covering “A” notes, “E” notes and term floating rate notes held by investors, will be redeemed at par plus a portion of the accrued interest; the amount of interest paid is proposed to be reduced by certain costs of the restructuring. Funding for this restructuring will be provided through the issuance of long term floating rate notes, issued by a new trust established for this purpose, to new investors which have been identified with the assistance of the bank counterparties and the Investors Committee.
“We are pleased to have come to a solution that addresses the short term liquidity needs of investors while preserving the full value of their investment in Skeena Capital Trust,” said Mr. Purdy Crawford. “This restructuring respects the key elements first disclosed on August 16, 2007 as part of the Montreal Accord. The restructuring of this first trust also clearly illustrates the level of cooperation between all parties to work constructively at finding a solution to the liquidity problem affecting the structured finance third party asset-backed commercial paper. We are continuing to work actively at finding solutions that address the needs and specific circumstances of the different conduits.”
Mr. Crawford emphasized that “the substance and timing of the restructuring of Skeena are attributable in part to the unique facts and circumstances applicable to it. Alternative solutions will be required to effect successful restructurings of other conduits.”
Mr. Kym Anthony, the President and Chief Executive Officer of Dundee Securities Corporation said, “We are committed to preserving and protecting the interests of Skeena investors and we are very pleased to be able to offer this restructuring solution to them. We are grateful to all of the participants in our negotiations for the level of cooperation and goodwill in working towards this solution.”
The proposed restructuring, including the redemption of the notes, is subject to the execution of definitive documentation, due diligence and certain conditions including the final placement and rating of the notes and is expected to be completed by, or shortly after, the end of October 2007. Investors in Skeena’s asset backed notes will be sent further information regarding the terms of the proposed restructuring within the next several days, including the timing and manner of payment for their existing notes.
For further information
NATIONAL Public Relations
Toronto
David Weiner
Tel. (416) 848-1633
Montreal
Roch Landriault:
Tel. (514) 843-2345, Cell: (514) 249-4537
Ernst & Young Inc. (Investors)
Pierre Laporte
(514) 874-4383
Skeena Capital Trust
Geoff Sinclair
Tel. (416) 840-8155
Visit the Dundee Structured Finance and Securitization Website
On August 14, 2007, Skeena Capital Trust ("Skeena") ensured payment of all Series A Notes, Class A Notes (liquidity backed) And Class E Notes (extendible) which matured on that date. Skeena issued approximately $179 million in liquidity-backed paper (Class A) and $87 million of extendible (Class E Notes). For maturing Class A Notes that�were not funded through the issuance of new notes (approximately $39 million), Skeena issued a market disruption notice to two of its liquidity lenders, ABN Amro and HSBC for their respective share of the $39 million of liquidity-backed notes. Both ABN Amro and HSBC have honoured the terms of their respective liquidity agreements and funding should be made available to Series A Noteholders for payment.
For further information, please contact Geoff Sinclair at (416)840-8155 or Mark Adams at (416)815-8100 ext. 223
Earlier today, and in conjunction with requests to draw on liquidity lines supporting Skeena Capital Trust, Skeena Capital Trust asked Dominion Bond Rating Service Limited ("DBRS") to confirm the ratings of the Series A, Class A and Class E Notes at R-1 (high) (the "notes"). Accordingly, DBRS has confirmed that the rating of the notes remains at R-1 (high). The transactions within Skeena have not deteriorated from a credit perspective. Details concerning asset composition and credit strength can be found in the monthly reports placed on this website. Nonetheless, and due to market disruption conditons in the Canadian ABCP market, we have asked our liquidity lenders to fund the redemption of Series A, Class A Notes subject to offering the Class A Notes in the ABCP marketplace on a daily basis.
Please contact Geoff Sinclair at (416) 840-8155 or Mark Adams at (416)815-8100 ext. 223 for further information.