Creststreet L.P. completes partial transfer into Creststreet Energy Opportunities Fund

Date: Friday, May 29, 2009
Author: Investment Executive

Creststreet 2007 Limited Partnership has completed the transfer of substantially all of the public securities component of the partnership’s portfolio, along with cash and certain private securities, to Creststreet Energy Opportunities Fund in exchange for series 2009 shares of the fund, Creststreet said Thursday.

The partnership then distributed the Series 2009 shares to unitholders as a return of capital distribution.

The transfer was approved by unitholders of the partnership at a special meeting held on May 14.

Unitholders received 0.20786714666 Series 2009 shares for each partnership unit held, which represents 70% of the value of a unitholder’s units of the partnership on May 27. At the time of the transfer the Net Asset Value of the partnership was $2.8588 and the Net Asset Value of the Series 2009 shares was $9.5883. Unitholders will continue to hold the same number of partnership units, the value of which is reduced by the value of the distribution paid. Tax reporting for this distribution will be included on the 2009 T5013A tax reporting issued by the partnership to all unitholders in March 2010, Creststreet says.

The partnership will continue to hold the remaining 30% of its portfolio, which is comprised principally of private securities. Creststreet says the partnership will endeavor to sell such private securities and will reinvest the net proceeds therefrom on a basis substantially similar to fund’s investment objectives, except that no additional private securities will be purchased.

The partnership will then complete a second transfer of all of its assets to fund on a tax-deferred basis as soon as it has achieved sufficient liquidity on its private investments to allow the transfer to proceed and, in any event, no later than May 29, 2011.

Upon completion of the second transfer, the partnership will be dissolved and the fund shares received will be distributed to unitholders of the partnership on a tax-deferred basis, Creststreet says.

Creststreet Energy Opportunities Fund managed and advised by Toronto-based Creststreet Asset Management Ltd. The fund's portfolio consists primarily of securities of issuers engaged in the global energy sector.