By Mary-Katherine Stinson
Lexington, Ky., March 27 – Algonquin Power & Utilities Corp. will remarket $1.15 billion of its senior notes due June 15, 2026 (BBB-/BBB), according to an FWP filed with the Securities and Exchange Commission.
This offering is a remarketing of the company’s 1.18% senior notes due 2026. Following the remarketing, the notes will be redesignated as the 5.365% senior notes due 2026.
The notes priced at 99.164, plus accrued interest to yield 5.777%, or Treasuries plus 115 basis points.
The notes are non-callable.
The remarketing agents are BofA Securities, Inc., CIBC World Markets Corp., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC, National Bank of Canada Financial Inc., Mizuho Securities USA LLC, SMBC Nikko Securities America Inc., BMO Capital Markets Corp., MUFG Securities Americas Inc. and Wells Fargo Securities, LLC.
The $1 billion of the corporation’s 1.18% senior notes due 2026 notes were originally issued on June 23, 2021, as components of the issuer’s underwritten offering of 20 million equity units, initially consisting of corporate units. Algonquin subsequently issued an additional 3 million equity units through the exercise of an over-allotment option, resulting in a total of $1.15 billion total outstanding principal.
Each corporate unit initially consisted of both a purchase contract obligating the holder to purchase common stock and a 1/20th undivided beneficial interest in $1,000 principal amount of notes. The debentures are being remarketed on behalf of the corporate unitholders.
The issuer will not receive any direct proceeds from the remarketing of the notes.
Algonquin Power is an Oakville, Ont.-based diversified utilities company.
| Issuer: | Algonquin Power & Utilities Corp.
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| Amount: | $1.15 billion
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| Issue: | Senior notes
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| Maturity: | June 15, 2026
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| Remarketing agents: | BofA Securities, Inc., CIBC World Markets Corp., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC, National Bank of Canada Financial Inc., Mizuho Securities USA LLC, SMBC Nikko Securities America Inc., BMO Capital Markets Corp., MUFG Securities Americas Inc. and Wells Fargo Securities, LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA (U.S.) and BNY Trust Co. of Canada (Canada)
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| Counsel to issuer: | Bennett Jones LLP (Canadian law) and Cravath, Swaine & Moore LLP (U.S. law)
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| Counsel to underwriters: | Bennett Jones LLP (Canadian law) and Cravath, Swaine & Moore LLP (U.S. law)
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| Coupon: | 5.365%
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| Price: | 99.164 plus accrued interest
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| Yield: | 5.777%
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| Spread: | Treasuries plus 115 bps
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| Call features: | Non-callable
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| Trade date: | March 26
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| Settlement date: | March 28
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| Ratings: | S&P: BBB-
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| Fitch: BBB
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| Cusip: | 015857AF2
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