By Rebecca Melvin
New York, Nov. 10 - Algonquin Power & Utilities Corp. priced C$55 million of 7.5-year convertible unsecured subordinated debentures on a bought-deal basis at par to yield 7% with an initial conversion premium of 25%, according to a news release.
Concurrently, Algonquin priced C$20 million of common stock, or 5.98 million shares, at C$3.35 per share.
There is an over-allotment option to sell C$8.25 million of additional debentures and 897,000 additional shares of stock.
The issue was made via a syndicate of underwriters led by CIBC World Markets Inc. and BMO Capital Markets.
The initial conversion price is C$4.20 per common share.
The convertibles are non-callable until Dec. 31, 2012, and then provisionally callable for two years at 125% of the conversion price. After Dec. 31, 2014, the bonds can be redeemed at par plus accrued interest.
Proceeds of about $35 million will be used to reduce existing senior short-term bank credit facilities. Proceeds of the stock offering and the balance of the debenture offering will be used to finance a recently announced hydroelectric generating facility acquisition and for other general corporate purposes.
Oakville, Ont.-based Algonquin is an electric power and distribution company.
| Issuer: | Algonquin Power & Utilities Corp.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$55 million
|
| Greenshoe: | C$8.25 million
|
| Maturity: | June 30, 2017
|
| Bookrunners: | Syndicate led by CIBC and BMO Capital
|
| Concurrent offering: | C$20 million of stock at C$3.35 per share
|
| Coupon: | 7%
|
| Price: | Par, C$1,000
|
| Yield: | 7%
|
| Conversion premium: | 25%
|
| Conversion price: | C$4.20
|
| Calls: | Non-callable until Dec. 31, 2012, then provisionally callable at 125% for two years
|
| Puts: | No puts
|
| Pricing date: | Nov. 10
|
| Settlement date: | Dec. 2
|
| Stock listing: | TSX: AQN
|
| Stock reference: | C$3.35
|
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