Emera buys receipts to help fund Odell wind power project acquisition
By Toni Weeks
San Luis Obispo, Calif., Sept. 5 – Algonquin Power & Utilities Corp. gave more details on its C$70 million private placement of subscription receipts with investor Emera Inc. that will help fund its acquisition of the Odell wind power project in Minnesota.
The investor purchased 7,865,170 subscription receipts at C$8.90 apiece.
Each subscription receipt represents a right to one Algonquin common share and will become convertible into 7,865,170 of the company’s shares following the closing of the company’s acquisition of Odell.
Algonquin announced the placement as part of its acquisition of the Odell project, a 200 MW wind power facility currently under construction in Cottonwood, Jackson, Martin and Watonwan Counties in Minnesota. Construction costs are estimated at $313.5 million.
The project qualifies for renewable energy production tax credits, and Algonquin expects that tax equity investors will provide $190.8 million of equity financing towards the costs of the project. The rest of the permanent financing will be arranged through the investment-grade bond platform of Algonquin’s power generation subsidiary.
Separately Algonquin announced on Thursday a C$150 million bought deal public offering of common shares via CIBC World Markets and TD Securities. Proceeds will be used to finance previously disclosed growth opportunities, to reduce amounts outstanding on its credit facilities and for general corporate purposes.
Algonquin is an Oakville, Ont.-based owner and operator of water, electricity and natural gas utilities in North America.
| Issuer: | Algonquin Power & Utilities Corp.
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| Issue: | Subscription receipts
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| Amount: | C$70 million
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| Shares: | Receipts convertible into 7,865,170 shares
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| Price: | C$8.90 per receipt
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| Investor: | Emera Inc.
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| Announcement date: | Sept. 4
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| Stock symbol: | TSX: AQN
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| Stock price: | C$9.06 at close Sept. 4
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| Market capitalization: | C$1.87 billion
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