Canada Cartage Diversified Income Fund completes C$118 million initial public offering

Torys acted as counsel to Canada Cartage Diversified Income Fund and CCSL with a team that included Jamie Scarlett, Sharon Geraghty, Glen Johnson, Aaron Emes, Cornell Wright, Paul Cowling, Tyson Dyck and Allen Yi (corporate and securities), Jane Helmstadter and Renée Laliberté (real estate), Corrado Cardarelli and Shiyamala Devan-Ramdas (tax), Amanda Balasubramanian, Nadine Rockman Katz and Carol Inwood (lending), Michael Fortier (environmental), Nadine Côté (employment), Mitch Frazer (pensions) and Joshua Goldstein and Michael Arnot (U.S. securities).

On March 14, 2006, Canada Cartage Diversified Income Fund (TSX: TRK.UN) completed its initial public offering of 11,827,597 units at C$10 per unit for proceeds of C$118,275,970. On March 30, it issued an additional 591,380 units at C$10 per unit for additional proceeds of C$5,913,800 pursuant to the exercise of the underwriters' over-allotment option. The proceeds of the offering were used to indirectly acquire a 66.8 percent interest in CCD Limited Partnership, which, using offering proceeds and the proceeds from a new C$40 million credit facility, acquired and now operates the business of Canada Cartage System, Limited (CCSL), an Ontario-based company with operations in Quebec, and Direct Integrated Transportation Inc., a Manitoba-based company with operations in Alberta, Saskatchewan and B.C. The remaining 33.2 percent interest is indirectly held by former shareholders of CCSL and Direct Integrated Transportation, including the current CEO of CCD Limited Partnership.

The underwriting syndicate was led by CIBC World Markets and included BMO Nesbitt Burns, Scotia Capital, TD Securities, Westwind Partners and HSBC Securities (Canada).

As a result of the transactions, Canada Cartage is Canada's only national transportation service specializing in fully outsourced, customer-located trucking services.