Corporate Conversion Information Print Page

A series of transactions took place on and effective September 1, 2013 in order to effect the conversion of Inter Pipeline Fund ("Inter Pipeline") from a limited partnership into a dividend paying corporation "Inter Pipeline Ltd." ("New Inter Pipeline"). More information on the conversion is contained in the following documents. 

Tax Election Information

Upon conversion, each previously held Class A limited partnership unit (“Units”) of Inter Pipeline Fund was converted into a common share of Inter Pipeline on a one for one basis. For unitholders who do not hold their Units in a tax deferred account (ie: RRSP, TFSA, RRIF, RESP, DPSP) this exchange was taxable unless the unitholder properly completed and submitted a valid Tax Election Form to Inter Pipeline by January 15, 2014.

Inter Pipeline will not accept any new tax election forms post-marked after January 15, 2014, and any such submitted forms will not be processed or returned.

Corporate Conversion FAQs

On September 1st, 2013, Inter Pipeline Fund converted from a Canadian limited partnership with its business affairs being administered, managed, controlled and operated by its general partner, Pipeline Management Inc. to a corporation with the name Inter Pipeline Ltd. ("Inter Pipeline").

Unitholders voted in favour of the corporate conversion at the Special Meeting on August 22, 2013. Additional information can be found in the Information Circular dated July 23, 2013, click here.

1. As an existing unitholder of Inter Pipeline Fund, what happens to my Class A limited partnership units ("Class A Units") upon corporate conversion?

Upon corporate conversion unitholders will receive one common share of Inter Pipeline in exchange for each Class A Unit. Unitholders may elect to exchange their Class A Units on a tax-deferred basis for Canadian Federal income tax purposes.

3. What was the rationale behind the corporate conversion?

Corporate conversion will provide the following benefits:

  • Allows Inter Pipeline to access foreign sources of equity capital which were not permitted under the limited partnership structure;
  • Provides enhanced flexibility to finance Inter Pipeline's significant growth capital requirements in the coming years;
  • Creates a more conventional form of corporate governance including the annual election of directions and the holding of annual meetings; and
  • Simplifies Inter Pipeline's entity structure, resulting in cost savings and the ability to complete commercial transactions more efficiently.
4. What impact does the corporate conversion have on distributions?

Inter Pipeline anticipates that there will be no change in its distribution policy following the corporate conversion and will continue to declare cash dividends on a monthly basis. Notwithstanding the foregoing, the amount of any dividends payable by Inter Pipeline will be at the discretion of the Board of Directors from time to time.

Dividends paid by Inter Pipeline after the corporate conversion, will not include a return of capital component. Inter Pipeline expects to designate any dividends paid as 'eligible dividends' for Canadian federal income tax purposes.

7. Has Inter Pipeline scheduled its first Annual General Meeting?

Inter Pipeline expects the first Annual General Meeting to be held in spring 2014.