By Cristal Cody
Prospect News, Oct. 25 - Algonquin Power & Utilities Corp. said on Thursday that it sold C$120 million of cumulative rate reset preferred shares that yield 4.5% annually for the initial period ending on Dec. 31, 2018.
The company sold 4.8 million shares of the series A preferred stock at C$25.00 per share.
Scotia Capital Inc. and TD Securities Inc. were the lead managers.
The dividend rate will reset on Dec. 31, 2018 and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 294 basis points.
Shareholders will have the option to convert all or any of their series A shares into series B cumulative floating-rate preferred shares on Dec. 31, 2018 and on Dec. 31 every five years thereafter.
Series B shareholders will receive quarterly floating-rate cumulative preferential cash dividends at a rate equal to the sum of the then 90-day Government of Canada treasury bill rate plus 294 bps.
The shares are redeemable by the company, at its option, on Dec. 31, 2018 and on Dec. 31 every five years thereafter.
Proceeds from the sale will be used to fund the equity portion of the acquisition of two wind farms in the United States and for general corporate purposes.
Oakville, Ont.-based Algonquin Power owns and operates regulated and non-regulated water, electricity and natural gas utilities in North America.
| Issuer: | Algonquin Power & Utilities Corp.
|
| Amount: | C$120 million, or 4.8 million shares
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| Maturity: | Dec. 31, 2018 (initial)
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| Resets: | Dec. 31, 2018 and every five years thereafter
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| Securities: | Series A cumulative rate reset preferred shares
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| Bookrunners: | Scotia Capital Inc., TD Securities Inc.
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| Dividend: | 4.5%; resets Dec. 31, 2018 and every five years thereafter to rate equal to Canada bond yield plus 294 bps
|
| Price: | C$25.00 per share
|
| Call feature: | Dec. 31, 2018 and every five years thereafter
|
| Pricing date: | Oct. 25
|
| Settlement date: | Nov. 9
|
| Distribution: | Canada
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