Atlantic Power to repay revolver, redeem some notes with loan proceeds

By Susanna Moon

Chicago, Jan. 30 - Atlantic Power Corp. said it plans to replace its $150 million senior secured revolving credit facility and repay or redeem some series of notes using proceeds of up to $800 million of credit facilities.

The company may repurchase or redeem some of its 9% senior notes due 2018 by means of a tender offer or otherwise, according to a company press release.

The company said it also plans to prepay or redeem at a price of par plus accrued interest and make-whole premium, the following notes issued by its subsidiaries:

• $190 million principal amount outstanding of 5.9% senior notes due 2014 issued by Curtis Palmer LLC; and

• $150 million principal amount outstanding of 5.87% senior guaranteed notes, series A, due 2015 and the $75 million principal amount outstanding of 5.97% senior guaranteed notes, series B, due 2017 issued by Atlantic Power (US) GP.

The plans are part of the company's efforts to address its upcoming debt maturities and improve its financial flexibility, the press release noted.

Atlantic Power LP, a wholly owned indirect subsidiary, launched the syndication of new senior secured credit facilities, consisting of up to $600 million principal amount of senior secured term loan facilities and up to $200 million principal amount of senior secured revolving credit facilities.

Proceeds also will be used for working capital needs and for general corporate purposes.

The early prepayment of the Atlantic Power (US) GP securities was facilitated by the company's recent consent solicitation after 100% of the noteholders approved the issuer's solicitation of a waiver of the prepayment notice provisions of the note purchase agreement governing those securities, the company said.

Atlantic Power is a Boston-based independent power producer.

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