EnerVest Diversified Income Trust

EnerVest Diversified Income Trust

September 06, 2007 09:30 ET

EnerVest Diversified Income Trust Announces Exchange Offer

CALGARY, ALBERTA--(Marketwire - Sept. 6, 2007) - EnerVest Diversified Income Trust, (TSX:EIT.UN) ("EnerVest") has filed a preliminary short form prospectus for a treasury offering of its units. EnerVest is offering to issue EnerVest units in exchange for units of selected royalty, income and real estate investment trusts, limited partnerships and corporations or other securities ("Issuer Securities") all of which are listed on the Toronto Stock Exchange (the "TSX"), subject to TSX approval. A listing of the Issuers is set out below. There is no cash subscription price for the EnerVest units.

This Exchange Offer is open to all holders of the Issuers until 4:00 p.m. EST on October 11, 2007 (the "Deposit Date"). The Exchange Offer may be accepted only by means of a book-entry deposit through the Canadian Depositary for Securities. Security holders of an Issuer who wish to accept the Exchange Offer must request their investment advisor or nominee to effect the transaction for them. Some nominees may require an earlier deadline for receiving instructions concerning a deposit.

The Exchange Ratio for the Issuer Securities of each Issuer will be determined by dividing the respective weighted average trading price of such Issuer Securities on the TSX during the period of three consecutive trading days ending on the Deposit Date by the weighted average trading price of the EnerVest Units on the TSX during the same period. The Exchange Ratios will be announced in a press release issued by EnerVest on or about October 15, 2007 and disclosed in a final prospectus to be filed shortly thereafter.

The maximum number of Issuer Securities of any particular Issuer which EnerVest will own subsequent to the Exchange Offer will amount to less than 10% of the outstanding Issuer Securities of such Issuer. This Exchange Offer does not constitute a takeover bid with respect to any of the Issuers.

EnerVest Diversified Management Inc., the manager, will reimburse EnerVest for all expenses incurred in connection with the Exchange Offer, including fees paid to the dealer manager and the soliciting dealers.

The potential benefits to unitholders who participate in the Exchange Offer include the following:

LOWER RISK: Diverse and balanced portfolio of income, royalty and real estate investment trusts, limited partnerships, corporations and other similar issuers (all of which are listed on the TSX) across a variety of industries and regions to reduce risk and distribution volatility.

HIGH YIELD: The current yield on EnerVest's units is approximately 13.8%. EnerVest's portfolio is actively managed to maximize monthly cash distributions relative to risk and maximize the underlying net asset value over the life of EnerVest.

EXPERIENCED MANAGEMENT: The Investment Manager is Cypress Capital Management Ltd. ("Cypress"), an experienced manager providing active, proven and experienced portfolio management.

NO DIRECT COST OR COMMISSION: The Exchange Offer enables current holders of units or other securities of the identified Issuers to acquire EnerVest units at no direct cost or brokerage commission.

ENHANCED LIQUIDITY: EnerVest units are publicly traded on the TSX and have significant liquidity. The average daily trading volume of EnerVest units was 494,440 for the three month period ended March 31, 2007 and 496,081 for the six month period ended June 30, 2007.

INCOME TAX ADVANTAGES: Current holders of Issuer Securities can optimize their specific tax needs by realizing either taxable capital gains or capital losses through the Exchange Offer. In addition, since its inception to December 31, 2006, EnerVest's distributions have been 49.7% non-taxable and are estimated to be 37.5% non-taxable for 2007.

PERFORMANCE: EnerVest provided annual compounded returns (capital appreciation plus average trading value of rights issued plus distributions) of 6.8% and 10.1% for the three and five years ended August 15, 2007, respectively.
GMP Securities L.P. is acting as dealer manager in connection with this Exchange Offer.

EnerVest Exchange Offer List of Issuers


Oil & Gas
Advantage Energy Income Fund
ARC Energy Trust
Baytex Energy Trust
Bonavista Energy Trust
Bonterra Energy Income Trust
Canetic Resources Trust
Crescent Point Energy Trust
Daylight Resources Trust
Enerplus Resources Fund
Fairborne Energy Trust
Focus Energy Trust
Harvest Energy Trust
NAL Oil & Gas Trust
Paramount Energy Trust
Pengrowth Energy Trust
Penn West Energy Trust
PEYTO Energy Trust
PrimeWest Energy Trust
Progress Energy Trust
Spectra Energy Income Fund
Trilogy Energy Trust
True Energy Trust
Vault Energy Trust
Vermilion Energy Trust
Zargon Energy Trust

Canadian Oil Sands Trust
Freehold Royalty Trust
Provident Energy Trust

Business Trusts
Consumer Services/Restaurants
A&W Revenue Royalties Income Fund
Boston Pizza Royalties Income Fund
Consumers' Waterheater Income Fund (The)

Aeroplan Income Fund
Cineplex Galaxy Income Fund
Cinram International Income Fund
Yellow Pages Income Fund

AutoCanada Income Fund
North West Company Fund
Sleep Country Canada Income Fund

Consumer Staples
Arctic Glacier Income Fund
Rogers Sugar Income Fund

Canexus Income Fund
Canfor Pulp Income Fund
Fording Canadian Coal Trust
Labrador Iron Ore Royalty Income Fund
Noranda Income Fund
Royal Utilities Income Fund
SFK Pulp Fund
Supremex Income Fund
TimberWest Forest Corp.

CML Healthcare Income Fund

Diversified Financials
CI Financial Income Fund
Davis + Henderson Income Fund
DirectCash Income Fund
First National Financial Income Fund
GMP Capital Trust
Morneau Sobeco Income Fund

Information Technology
Teranet Income Fund

Pipeline & Utility
AltaGas Income Trust
Enbridge Income Fund
Fort Chicago Energy Partners L.P.
Inter Pipeline Fund
Keyera Facilities Income Fund
Parkland Income Fund
Pembina Pipeline Income Fund
Taylor NGL Limited Partnership

Energy Equipment & Services
Bonnett's Energy Services Trust
Builders Energy Services Trust
Eveready Income Fund
Peak Energy Services Trust
Precision Drilling Trust
Total Energy Services Trust
Trinidad Energy Services Income Trust
Wellco Energy Services Trust

Algonquin Power Income Fund
Boralex Power Income Fund
Energy Savings Income Fund
EPCOR Power L.P.
Gaz Metro Limited Partnership
Great Lakes Hydro Income Fund
Innergex Power Income Fund
Macquarie Power & Infrastructure Income Fund
Northland Power Income Fund
TransAlta Power, L.P.

Capital Goods
Ag Growth Income Fund
Badger Income Fund
Foremost Income Fund
Superior Plus Income Fund
Vicwest Income Fund
Wajax Income Fund

Commercial Services & Supplies
BFI Canada Income Fund
Newalta Income Fund
Trimac Income Fund

Contrans Income Fund
Jazz Air Income Fund
Livingston International Income Fund
TransForce Income Fund
Westshore Terminals Income Fund

Telecommunication Services
Bell Aliant Regional Communications Income Fund

Real Estate Investment Trusts
Allied Properties REIT
Boardwalk REIT
Calloway REIT
Canadian Apartment Properties REIT
Canadian REIT
Cominar REIT
Crombie REIT
Dundee REIT
InnVest REIT
Morguard REIT
Northern Property REIT
Primaris Retail REIT
Retrocom Mid-Market REIT
Royal Host REIT


Banks / Financial Services
Bank of Montreal
Bank of Nova Scotia (The)
Canadian Imperial Bank of Commerce
Canadian Western Bank
Great-West Lifeco Inc.
Home Capital Group Inc.
IGM Financial Inc.
Industrial Alliance Insurance and Financial Services Inc.
ING Canada Inc.
Manulife Financial Corporation
National Bank of Canada
Power Corporation of Canada
Power Financial Corporation
Royal Bank of Canada
Saxon Financial Inc.
Sun Life Financial Inc.
Toronto-Dominion Bank (The)

Telecommunications and Media
BCE Inc.
Manitoba Telecom Services Inc.
Shaw Communications Inc.
TELUS Corporation

Russel Metals Inc.

Real Estate
First Capital Realty Inc.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • EnerVest Diversified Management Inc.
    Kevin W. Wolfe
    President & Chief Executive Officer
    (403) 571-5550 or Toll Free: 1-800-459-3384
    EnerVest Diversified Management Inc.
    Sean J. H. Morgan
    Chief Financial Officer
    (403) 571-5550 or Toll Free: 1-800-459-3384
    EnerVest Diversified Management Inc.
    Kristie Allen
    Investor Relations
    (403) 571-5550 or Toll Free: 1-800-459-3384
    EnerVest Diversified Management Inc.
    Linda Koroluk
    Investor Relations
    (403) 571-5550 or Toll Free: 1-800-459-3384
    (403) 571-5554 (FAX)
    Email: info@enervest.com
    Website: www.enervest.com
    GMP Securities L.P.
    Matt Sobolewski
    Investment Banking
    (403) 543-3030
    GMP Securities L.P.
    Jo-Anne Stansfield