Northland Power greenshoe raises convertibles to C$157.5 million

New York, Jan. 28 – Northland Power Inc. said the underwriters of its offering of 5.5-year convertible debentures exercised the C$7.5 million over-allotment option in full, increasing the sale to C$157.5 million.

The additional debentures closed Wednesday, according to a news release.

As previously reported, Northland priced C$150 million of the convertibles on a bought-deal basis on Jan. 13 to yield 4.75% with an initial conversion premium of 36%.

The deal was brought by a syndicate of underwriters led by BMO Capital Markets, CIBC World Markets Inc. and National Bank Financial.

The debentures will be convertible at C$21.60 per share.

The securities are non-callable until June 30, 2018 and then provisionally callable for one year until June 20, 2019 if shares exceed 125% of the conversion price. After that they are freely callable.

Proceeds will be used to fund a portion of Northland’s investments in Nordsee One and the Grand Bend wind farm in Ontario, to replenish working capital and for general corporate purposes.

Based in Toronto, Northland Power is an independent power producer.

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