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Algonquin elects not to call series A preferreds, holders may convert
By Sarah Lizee
Olympia, Wash., Nov. 28 – Algonquin Power & Utilities Corp. announced on Wednesday that it does not intend to redeem the currently 4.8 million of outstanding cumulative five-year rate series A reset preferred shares on the Dec. 31 conversion date.
As a result, holders will have the right to convert all or part of their series A preferred shares on a one-for-one basis into cumulative floating rate series B preferred shares on the conversion date, according to a press release.
Holders who do not exercise their conversion right will retain their series A preferred shares.
The dividend rate for the series A preferred shares for the five-year period from Dec. 31 to but excluding Dec. 31, 2023, and the dividend rate applicable to the series B preferred shares for the three-month period from Dec. 31 to but excluding March 31, 2019, will be determined and announced on Dec. 3, the company said.
If the company determines that there would remain outstanding on the conversion date fewer than 1 million series B preferred shares, after having taken into account all series A preferred shares tendered for conversion into series B preferred shares, then holders of series A preferred shares will not be entitled to convert their series A preferred shares into series B preferred shares.
And, if the company determines that there would remain outstanding on the conversion date fewer than 1 million series A preferred shares, after having taken into account all series A preferred shares tendered for conversion into series b preferred shares, then all remaining series A preferred shares will automatically be converted into series B preferred shares without the consent of the holders on a one-for-one basis on the conversion date.
The company’s shares closed at C$13.89 (Toronto: AGN) on Wednesday.
Algonquin Power is an Oakville, Ont.-based diversified utilities company.
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