ONCAP backed Pinnacle Renewable files for IPO on TSX

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By Ted Liu

Pinnacle Renewable Holdings Inc. has filed a preliminary prospectus for a proposed initial public offering (IPO) and secondary offering of common shares by certain existing shareholders, including entities affiliated with ONCAP, the middle-market private equity platform of Onex Corporation (TSX: ONEX).

The selling shareholders include ONCAP II L.P., ONCAP US (II) L.P., ONCAP (US) II-A L.P., ONEX Parallel Investment (ONCAP) L.P. and Biomass EI Ltd. (ONCAP Entities) and Rob
Swaan Holdings Inc., Jim Swaan Holdings Inc., Beckman Holdings Inc., Leroy Reitsma, Lodge Family Trust and Rick Davis.

The offering is being co-led by CIBC Capital Markets and RBC Capital Markets, together with BMO Nesbitt Burns Inc. and Scotia Capital Inc., as joint bookrunners, and National Bank Financial Inc., GMP Securities L.P., Raymond James Ltd. and HSBC Securities (Canada) Inc., as underwriters. Stikeman Elliott LLP and McCarthy Tétrault LLP act as legal counsel to Pinnacle and the underwriters respectively.

Pinnacle Renewable Holdings intends to apply to list its shares on the Toronto Stock Exchange (TSX).

Richmond, BC based Pinnacle Renewable is a rapidly growing industrial wood pellet manufacturer and distributor and the third largest producer in the world. It produces renewable fuel for electricity generation in the form of industrial wood pellets, which are used by global utilities and large-scale power generators to produce renewable and reliable baseload power. The company operates six industrial wood pellet production facilities, a port terminal, and have new production facilities under development in Entwistle, Alberta and Smithers, B.C. Pinnacle has entered into long-term take-or-pay contracts with utilities in the UK, Europe and Asia that represent 100% of its production capacity through 2021 and nearly 80% of our production capacity through 2026.

Pinnacle Renewable was founded in 1989 by Jim and Rob Swaan with the support of Doug Beckman. In May 2011, Swaans, Beckman and Leroy Reitsma partnered with ONCAP with ONCAP acquiring a majority stake in the company.

photo credit: Pinnacle Renewable