By Wendy Van Sickle
Columbus, Ohio, Jan. 12 – Algonquin Power & Utilities Corp. priced $750 million series 2022-B 4¾% fixed-to-fixed reset rate junior subordinated notes due 2082 (BB+/BB+) at par on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
On April 18, 2027, and every five years after that, the note’s interest rate will be reset to a coupon equal to Treasuries plus a spread that will initially be 324.9 basis points, stepping up to 349.9 bps on April 18, 2032 and to 424.9 bps on April 18, 2052.
The notes feature a make-whole call at Treasuries plus 50 bps during the non-par call periods and a par call during the par call periods, which are the Jan. 18 preceding a reset date through that reset date.
BofA Securities Inc. and Wells Fargo Securities LLC are the bookrunners.
Concurrently with the U.S. offering, Algonquin also announced that it was offering in Canada C$400 million of series 2022-A 5¼% fixed-to-fixed reset rate junior subordinated notes due 2082.
For the Canadian sale, RBC Capital Markets LLC and TD Securities were tapped as 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.
| Issuer: | Algonquin Power Co.
|
| Amount: | $750 million
|
| Issue: | Fixed-to-fixed reset rate junior subordinated notes
|
| Maturity: | Jan. 18, 2082
|
| Bookrunners: | BofA Securities Inc. and Wells Fargo Securities LLC
|
| Coupon: | 4¾% initially, resets on April 18, 2027 and every five years thereafter at Treasuries plus a spread that will initially be 324.9 bps, stepping up to 349.9 bps on April 18, 2032 and to 424.9 bps on April 18, 2052
|
| Price: | Par
|
| Call: | Par call from the Jan. 18 preceding a reset date through that reset date and make-whole call at Treasuries plus 50 bps at other times
|
| Pricing date: | Jan. 12
|
| Settlement date: | Jan. 18
|
| Ratings: | S&P: BB+
|
| Fitch: BB+
|
| Cusip: | 015857AH8
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
