Energy Split Corp. II INC. Announces New Fixed Distribution Rate on ROC Preferred Shares

    TORONTO, Nov. 9 /CNW/ - Energy Split Corp. II Inc. (the "Company")
announced today that pursuant to the Company's reorganization the new fixed
distribution rate on the ROC Preferred Shares is 5.00%. This represents an
increase of 0.75% over the current fixed rate of 4.25% of the ROC Preferred
Shares. If the reorganization is successful and based on the $25.00 issue
price of the ROC Preferred Shares, holders of ROC Preferred Shares will be
entitled to quarterly fixed distributions of $0.3125 effective  December 16,
    The new fixed distribution rate was determined based on a formula
approved by holders of Capital Yield Shares and holders of ROC Preferred
Shares at a special meeting held October 23, 2007. The formula provided for
the rate to equal the greater of (i) 5.00% and (ii) the Government of Canada
three year bond rate as at November 9, 2007 plus 0.75%, rounded down to the
nearest 0.05%.
    Under the reorganization, holders of Capital Yield Shares and holders of
ROC Preferred Shares have the right to retract their shares pursuant to the
additional special retraction right (the "Special Retraction Right"). This
will enable holders to redeem their Capital Yield Shares or ROC Preferred
Shares on the terms that would have applied had the Company redeemed all
Capital Yield Shares and ROC Preferred Shares as originally contemplated.
Holders of the Capital Yield Shares and holders of the ROC Preferred Shares
who wish to exercise the Special Retraction Right must give notice of the
retraction on or prior to November 16, 2007.
    The reorganization will only be implemented if a minimum of
1,280,000 Capital Yield Shares remain issued and outstanding following
exercise of the Special Retraction Right by holders on or before November 16,
2007. If this condition is not satisfied, the Company will redeem the Capital
Yield Shares and the ROC Preferred Shares on December 16, 2007 as originally
    If the reorganization is implemented the ratio of Capital Yield Shares to
ROC Preferred Shares will continue to be two-to-one and the asset coverage on
the ROC Preferred Shares will be set at approximately 2.2 times to extend the
current Pfd-2(low) rating. In order to achieve this, the Company may redeem
ROC Preferred Shares which are not surrendered for retraction pursuant to the
Special Retraction Right. The reorganization is not conditional on the rating
being maintained.

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

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