Retail Supplier Holding Co. Completes $100 Million IPO, May Fund Acquisitions

Crius Energy Trust has completed its initial public offering of 10 million trust units priced at $10.00 per Unit for total gross proceeds of $100.0 million (all $ Canadian).

The majority of the net proceeds of the offering will be used, indirectly, to purchase an approximate 26.8% interest in Crius Energy, LLC.

Crius Energy, LLC, through several brands including Viridian Energy, Public Power, Cincinnati Bell Energy, FairPoint Energy, and FTR Energy Services, markets and sells electricity and natural gas to residential and small to medium-size commercial customers in the United States.

In addition, approximately $25 million of the net proceeds will be used for general corporate purposes and to fund future acquisitions.

The previously reported IPO had been planned as part of a series of transactions which saw the combination of Regional Energy Holdings, Inc. (REH) and Public Power, LLC

"We look forward to delivering value to our investors and continuing to deliver value to our customers as we provide them with innovative energy options," said Michael Fallquist, Chief Executive Officer, Crius Energy. "Less than four years ago, our first brand was launched and now, together, our five brands carry a customer base of well over 500,000 residential customer equivalents."

The Units are traded on the Toronto Stock Exchange under the symbol "KWH.UN".

The offering was completed through a syndicate of underwriters co-led by Scotiabank, RBC Capital Markets and UBS Securities Canada Inc., and including National Bank Financial Inc., Macquarie Capital Markets Canada Ltd., Raymond James Ltd., Desjardins Securities Inc., GMP Securities L.P. and Chardan Capital Markets, LLC.

The underwriters have been granted an over-allotment option, exercisable for a period of 30 days from the date of the closing of the offering, to purchase up to an additional 1.5 million Units at the offering price of $10.00 per Unit to cover over-allotments, if any, and for market stabilization purposes. If the over-allotment option is exercised in full, the gross proceeds of the offering will be $115.0 million. The net proceeds from the over-allotment received by the Trust will be used, indirectly, to acquire up to an additional 4% interest in Crius Energy, LLC and any remaining net proceeds from the over-allotment will be used for general corporate purposes.

Crius Energy expects that the initial monthly cash distribution rate will be $0.0833 per Unit. The initial cash distribution, which will be for the period from and including the date of closing of the offering to December 31, 2012, is expected to be paid on January 15, 2013 to unitholders of record on December 31, 2012 and is estimated to be $0.1326 per Unit.