What is a Canadian Cross-Border Income Trust (CBIT)?

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Part 1 of 4 Part Series - Robert McCue, a partner in our Calgary office of Bennett Jones LLP discusses the Canadian Cross-Border Income Trust (CBIT), also referred to as FAIT, and the benefits provided to American clients.

In 2010, Bennett Jones lawyers helped create Cross-Border Income Trusts (CBITs) in response to the SIFT rules, which do not apply to business income arising outside of Canada. In November of 2010, Eagle Energy Trust went See more +

Part 1 of 4 Part Series - Robert McCue, a partner in our Calgary office of Bennett Jones LLP discusses the Canadian Cross-Border Income Trust (CBIT), also referred to as FAIT, and the benefits provided to American clients.

In 2010, Bennett Jones lawyers helped create Cross-Border Income Trusts (CBITs) in response to the SIFT rules, which do not apply to business income arising outside of Canada. In November of 2010, Eagle Energy Trust went public with a $169-million IPO. Bennett Jones lawyers acted for Eagle Energy Trust. The firm also acted for Parallel Energy Trust in the spring of 2011 with respect to its $393-million IPO, Argent Energy Trust in respect of its $244-million IPO and Crius Energy Trust in respect of its $100-million IPO. As an energy retailer, Crius Energy Trust is the first CBIT with US assets outside of the oil and gas industry. It is also the first CBIT with a retained interest in the US operating company.

To date, Bennett Jones lawyers have acted for the issuer or underwriters on almost every CBIT that has come to market. Our expertise and understanding of this new vehicle combined with our bench strength have allowed us to earn a leading position in CBIT transactions.

Bennett Jones' CBIT success is an outgrowth of the firm's robust tax, securities and M&A practices. The firm has been involved in half of the ten largest Canadian business IPO deals since January of 2010 (excluding REITS), including MEG Energy Corporation (C$700 million) (acted for issuer), SMART Technologies (US$660 million) (acted for issuer), Gibson Energy (C$568 million) (acted for issuer), Parallel Energy Trust (C$393 million) (acted for issuer) and Argent Energy Trust (C$244 million) (acted for issuer). See less -

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