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Algonquin Power announces conversion right for series D preferreds
By Angela McDaniels
Tacoma, Wash., Feb. 26 – Algonquin Power & Utilities Corp. does not plan to exercise its right to redeem its 4 million cumulative rate reset preferred shares, series D on April 1, according to a company news release.
As a result, the holders have the right to convert all or part of their series D preferreds, on a one-for-one basis, into cumulative floating-rate preferred shares, series E on April 1.
The dividend rate applicable to the series D preferreds for the five-year period ending March 31, 2024 and the dividend rate applicable to the series E preferreds for the three-month period ending June 30 will be determined and announced by the company on March 1.
The conversion period runs from March 1 until 5 p.m. ET on March 15.
The conversion rights are subject to the following conditions:
• If Algonquin Power & Utilities determines that there would remain outstanding on the conversion date fewer than 1 million series E preferreds, after having taken into account all series D preferreds tendered for conversion into series E preferreds, then holders of series D preferreds will not be entitled to convert their series D preferreds into series E preferreds; and
• Alternatively, if the company determines that there would remain outstanding on the conversion date fewer than 1 million series D preferreds, after having taken into account all series D preferreds tendered for conversion into series E preferreds, then all remaining series D preferreds will automatically be converted into series E preferreds without the consent of the holders, on a one-for-one basis, on the conversion date.
In either case, the company will give written notice to that effect to the registered holder of series D preferreds no later than March 22.
Algonquin Power is an Oakville, Ont.-based diversified utilities company.
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