Energy Split Corp. II Inc. - Partial Call for Redemption and Subdivision of ROC Preferred Shares

    TORONTO, Nov. 30 /CNW/ - Energy Split Corp. II Inc. (the "Company")
announced today that in relation to its reorganization, the Company has called
186,000 ROC Preferred Shares for cash redemption on December 14, 2007
representing approximately 22.245% of the outstanding ROC Preferred Shares.
The ROC Preferred Shares shall be redeemed on a pro rata basis so that each
holder of ROC Preferred Shares of record on December 13, 2007 will have
approximately 22.245% of their ROC Preferred Shares redeemed. The redemption
price of the ROC Preferred Shares will be equal to the lesser of (i) Unit
Value as determined on the December 6, 2007 (the "Valuation Date") and (ii)
$25.00. As at the close of business today, Unit Value was $42.76.
    Holders of ROC Preferred Shares that are on record for the dividend but
have been called for redemption will be entitled to receive dividends thereon
which have been declared but remain unpaid up to but not including
December 16, 2007.
    The Company is redeeming the 186,000 ROC Preferred Shares in order to
increase the downside protection on the remaining ROC Preferred Shares to
approximately 55%, as of November 30, 2007, in order to maintain the current
rating of Pfd-2 (low) on the ROC Preferred Shares. There is no assurance that
the rating will be maintained and the redemption and reorganization are not
conditional on the rating being maintained. The redemption is taking place in
accordance with the approval received from shareholders at the meeting
approving the reorganization.
    Immediately following the redemption of the ROC Preferred Shares and upon
the completion of the reorganization, in order to maintain the ratio of
Capital Yield Shares to ROC Preferred Shares of two-to-one, the Company will
subdivide the remaining 650,131 ROC Preferred Shares such that there will be
approximately 1.82 ROC Preferred Shares outstanding following the subdivision
for every ROC Preferred Share outstanding immediately prior to the subdivision
resulting in a total of 1,183,343 ROC Preferred Shares outstanding after the
subdivision. ROC Preferred Shares are currently redeemable for a cash amount
equal to the lesser of (i) $25.00 and (ii) Unit Value. After the subdivision,
the outstanding ROC Preferred Shares will be redeemable for a cash amount
equal to the lesser of (i) $13.74 and (ii) Unit Value and will be entitled to,
effective December 16, 2007, quarterly fixed distributions of $0.1718. On an
annualized basis, the new fixed distribution would represent a yield of 5.00%
on the redemption price of $13.74.
    Capital Yield Shares and ROC Preferred Shares of Energy Split Corp. II
Inc. are listed for trading on the Toronto Stock Exchange under the symbols EN
and EN.PR.A respectively.

    %SEDAR: 00021250E

For further information:

For further information: Please contact: Investor Relations, Energy
Split Corp. II Inc. (416) 945-4777, E-mail:,
Web site:

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