By Rebecca Melvin
New York, Feb. 9 – Algonquin Power & Utilities Corp. and its subsidiary Liberty Utilities (Canada) Corp. have sold C$1 billion of 5% 10-year convertible unsecured subordinated debentures on a bought-deal basis, according to a news release.
There is an over-allotment option to sell C$150 million of additional debentures.
The issue was made via a syndicate of underwriters led by CIBC Capital Markets and Scotiabank, and are being sold on an installment basis of which C$333 of the C$1,000 par bond is payable upon closing of the offering on March 1, and the remaining C$667 is payable on a date to be fixed by Algonquin following closing of the acquisition by Liberty Utilities of the Empire District Electric Co.
Proceeds of the first installment are expected to be C$313 million and will be used to reduce the company’s revolving term credit facilities or invest in short-term interest bearing securities with investment-grade counterparties. Proceeds from the final installment will be used to finance part of the purchase price payable for the Empire acquisition.
Under the terms of the all-cash acquisition, Empire shareholders will receive $34.00 per common share, representing an aggregate purchase price of about C$3.4 billion, or $2.4 billion, including the assumption of about C$1.3 billion of debt.
Oakville, Ont.-based Algonquin is an electric power and distribution company.
| Issuer: | Algonquin Power & Utilities Corp. and Liberty Utilities (Canada) Corp.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$1 billion
|
| Greenshoe: | C$150 million
|
| Maturity: | March 31, 2026
|
| Bookrunners: | Syndicate led by CIBC Capital Markets and Scotiabank
|
| Coupon: | 5%
|
| Price: | Par, C$1,000
|
| Conversion price: | C$10.60
|
| Conversion ratio: | 94.3396 common shares
|
| Calls: | Non-callable
|
| Pricing date: | Feb. 1
|
| Closing: | March 1
|
| Stock listing: | TSX: AQN
|
| Distribution: | Public offering in Canada
|
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