Algonquin Power & Utilities greenshoe exercised, lifts 5% 10-year convertibles to C$1.15 billion

By Susanna Moon

Chicago, March 9 – Algonquin Power & Utilities Corp. underwriters fully exercised the C$150 million over-allotment option on its 5% 10-year convertible unsecured subordinated debentures.

This brings the total deal size to C$1.15 billion, according to a company announcement.

As announced Feb. 9, Algonquin and its subsidiary Liberty Utilities (Canada) Corp. sold C$1 billion of the convertibles on a bought-deal basis.

The syndicate of underwriters was led by CIBC Capital Markets and Scotiabank.

The notes were 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 were 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, including the assumption of about C$1.3 billion of debt.

Oakville, Ont.-based Algonquin is an electric power and distribution company.

© 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.