Algonquin Power & Utilities Corp. Announces Closing of Private Offering of
$150 million 4.82% Senior Unsecured Debentures
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
OAKVILLE, ON, Dec. 3, 2012 /CNW/ - Algonquin Power & Utilities Corp. ("APUC")
(TSX: AQN) today announced that Algonquin Power Co. ("APCo"), APUC's
non-regulated power generation subsidiary, has completed the previously
announced private placement offering in Canada and the United States (the
"Offering") of CDN$150 million 4.82% senior unsecured debentures with a
maturity date of February 15, 2021 (the "APCo Debentures").
The APCo Debentures were sold at a price of $99.94 per $100.00 principal
amount, resulting in an effective yield to maturity of 4.83% per annum.
Interest payments will be payable on February 15 and August 15 each year,
commencing on February 15, 2013. Concurrent with the Offering, APCo entered
into a cross currency swap, coterminous with the APCo Debentures, to convert
the Canadian dollar denominated Offering into U.S. dollars, resulting in an
effective interest rate throughout the term of the APCo Debentures of 4.40%
Net proceeds from the APCo Debentures will be used primarily to fund the
remaining portion of the acquisition of a majority interest in a 400 MW
portfolio of contracted wind farms in the United States.
APCo has been provided long-term issuer credit ratings of "BBB (low)", with a
"stable" trend, by DBRS Limited and "BBB-", with a "positive" outlook, by
Standard & Poor's Rating Service.
The APCo Debenture Offering was co-led by National Bank Financial and BMO
The offer and sale of the APCo Debentures have not been and will not be
registered under the Securities Act of 1933, as amended (the "Securities
Act"), or the securities laws of any state of the United States and may not be
offered or sold in the United States or to United States persons (as defined
in Regulation S under the Securities Act), except pursuant to an exemption
from the registration requirements of the Securities Act and applicable state
securities laws. Accordingly, the APCo Debentures are being offered only (i)
in the United States to a limited number of qualified institutional accredited
investors in transactions exempt from registration requirements of the
Securities Act and (ii) outside the United States in compliance with
Regulation S and the applicable laws of the jurisdictions where these offers
and sales occur.
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified portfolio of
$1.9 billion of regulated and non-regulated utilities in North America. The
company's regulated utility business provides water, electricity and natural
gas utility services to more than 335,000 customers through its nationwide
portfolio of regulated generation, transmission and distribution utility
systems. The company's non-regulated electric generation subsidiary owns or
has interest in renewable energy and thermal energy facilities representing
more than 680 MW of installed capacity. Algonquin delivers continuing growth
through an expanding pipeline of renewable power and clean energy projects,
organic growth within its regulated utilities and the pursuit of accretive
acquisition opportunities. Common shares and Preferred shares are traded on
the Toronto Stock Exchange under the symbol AQN and AQN.PR.A respectively.
Visit Algonquin Power and Utilities at www.AlgonquinPowerandUtilities.com and
follow us on Twitter @AQN_Utilities.
Caution Regarding Forward-Looking Information
Certain statements included in this news release contain information that is
forward-looking within the meaning of certain securities laws, including
information and statements regarding prospective results of operations,
financial position or cash flows. These statements are based on factors or
assumptions that were applied in drawing a conclusion or making a forecast or
projection, including assumptions based on historical trends, current
conditions and expected future developments. Since forward-looking statements
relate to future events and conditions, by their very nature they require
making assumptions and involve inherent risks and uncertainties. APUC cautions
that although it is believed that the assumptions are reasonable in the
circumstances, these risks and uncertainties give rise to the possibility that
actual results may differ materially from the expectations set out in the
forward-looking statements. Material risk factors include those set out in the
management's discussion and analysis section of APUC's most recent annual
report, quarterly report, and APUC's Annual Information Form. Given these
risks, undue reliance should not be placed on these forward-looking
statements, which apply only as of their dates. Other than as specifically
required by law, APUC undertakes no obligation to update any forward-looking
statements or information to reflect new information, subsequent or otherwise.
Kelly Castledine Algonquin Power & Utilities Corp. 2845 Bristol Circle,
Oakville, Ontario, L6H 7H7 Telephone: (905) 465-4500
SOURCE: Algonquin Power & Utilities Corp.
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