Algonquin Power eyes fixed-to-fixed reset rate junior subordinated notes due 2082

By Devika Patel

Knoxville, Tenn., Jan. 10 – Algonquin Power & Utilities Corp. will price dollar-denominated series 2022-B fixed-to-fixed reset rate junior subordinated notes due 2082, according to SUPPL and 497AD filings with the Securities and Exchange Commission.

In 2027, and every five years after that, the note’s interest rate will be reset to a coupon equal to Treasuries plus a premium.

The notes feature a make-whole call during the non-par call periods and a par call during the par call periods.

BofA Securities Inc. and Wells Fargo Securities LLC are the bookrunners.

Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., CIBC World Markets Corp., J.P. Morgan Securities LLC, RBC Capital Markets LLC, TD Securities (USA) LLC, BMO Capital Markets Corp. and National Bank of Canada Financial Inc. are the co-managers.

Concurrently with the U.S. offering, Algonquin also announced that it is considering a public offering in Canada of Canadian dollar-denominated series 2022-A fixed-to-fixed reset rate junior subordinated notes due 2082.

For the Canadian sale, RBC Capital Markets LLC and TD Securities are the lead underwriters.

Proceeds from both offerings will be used to finance in part the company’s planned acquisitions of Kentucky Power Co. and AEP Kentucky Transmission Co., Inc.

Algonquin Power is an Oakville, Ont.-based diversified utilities company.

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