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Canadian Income Trusts – An Attractive Liquidity Option for U.S.Companies

October-1-2002

Lawyer Stephen Pincus
Area Corporate Finance and Securities, REITs and Income Securities

Summary


U.S. companies now have an attractive new way of raising capital and providing liquidity for their stockholders – forming an income trust in Canada.

Yield-hungry investors have purchased over C$9 billion of Canadian income trust units since early 2001, bringing the market capitalization of income trusts on the Toronto Stock Exchange to over C$40 billion. While a broad range of Canadian businesses have raised capital through the income trust vehicle, there is a growing realization that U.S. private companies may provide significant untapped potential for this market.

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