Algonquin Power & Utilities Corp. Announces Private Offering of Senior
/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR
DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES./
OAKVILLE, ON, Jan. 14, 2014 /CNW/ - Algonquin Power & Utilities Corp. ("APUC")
(TSX: AQN) today announced that Algonquin Power Co. ("APCo"), APUC's
non-regulated power generation subsidiary, offered for sale CDN$200 million
4.65% senior unsecured debentures with a maturity date of February 15, 2022
(the "APCo Debentures") pursuant to a private placement in Canada and the
United States (the "Offering"). The APCo Debentures were offered at a price of
$99.864 per $100.00 principal amount, resulting in an effective yield to
maturity of 4.671% per annum.
Net proceeds from the APCo Debentures will be used for one or more of the
following uses: towards financing the acquisition of the remaining 40%
ownership interest in its three wind farms in the U.S., to reduce amounts
outstanding on project debt related to its Shady Oaks wind farm, to reduce
amounts outstanding under its bank credit facility and for general corporate
purposes. Concurrent with the Offering, APCo is entering 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 approximately 4.773%.
"We continue to strengthen our power portfolio through this additional
investment in wind generation in the U.S. market where we see tremendous
opportunities for sustained growth over the long term", commented David
Bronicheski, Chief Financial Officer of APUC. "Our investment grade, senior
unsecured financing platform provides us with excellent access to the debt
capital markets as a key element of our financing strategy as we continue
growing our contracted independent power portfolio and add accretive earnings
and cash flow to our business".
APCo has been provided long-term issuer credit ratings of "BBB", with a
"stable" outlook, by Standard & Poor's Rating Service and "BBB (low)", with a
"stable" trend, by DBRS Limited.
The APCo Debenture offering is being co-led by National Bank Financial and
Scotiabank and is expected to close on or about January 17, 2014.
THE OFFER AND SALE OF THE ALGONQUIN POWER CO. DEBENTURES HAS NOT BEEN AND WILL
NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT") OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.
THEREFORE, THIS COMMUNICATION DOES NOT CONSTITUTE AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE DEBENTURES IN THE UNITED STATES AND
THE DEBENTURES MAY NOT BE SOLD IN THE UNITED STATES OR TO U.S. PERSONS (AS
DEFINED IN RULE 902(K) OF REGULATION S UNDER THE SECURITIES ACT), EXCEPT
PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENT OF THE SECURITIES
ACT AND APPLICABLE STATE SECURITIES LAWS. ACCORDINGLY, THE ALGONQUIN POWER CO.
DEBENTURES ARE BEING OFFERED ONLY (1) TO A LIMITED NUMBER OF QUALIFIED
INSTITUTIONAL ACCREDITED INVESTORS IN TRANSACTIONS EXEMPT FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND (2) OUTSIDE THE UNITED
STATES IN COMPLIANCE WITH REGULATION S AND THE APPLICABLE LAWS OF THE
JURISDICTIONS WHERE THOSE OFFERS AND SALES OCCUR.
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified $3.2 billion
portfolio of regulated and non-regulated utilities in North America. The
regulated utility business provides water, electricity and natural gas utility
services to over 470,000 customers through a portfolio of regulated
generation, transmission and distribution utility systems. The non-regulated
electric generation subsidiary owns or has interests in renewable energy and
thermal energy facilities representing more than 1,100 MW of installed
capacity. Algonquin Power & Utilities Corp. 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 symbols 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, including the anticipated
closing date of the debenture financing and intended use of proceeds, 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.
SOURCE Algonquin Power & Utilities Corp.
Kelly Castledine Algonquin Power & Utilities Corp. 2845 Bristol Circle,
Oakville, Ontario, L6H 7H7 Telephone: (905) 465-4500
To view this news release in HTML formatting, please use the following URL:
CO: Algonquin Power & Utilities Corp.
NI: OIL NEWSTK
-0- Jan/14/2014 21:45 GMT
Press spacebar to pause and continue. Press esc to stop.