By Rebecca Melvin
New York, Feb. 24 - Northland Power Inc. priced $75 million of five-year extendible convertible debentures on a bought-deal basis at par to yield 5% with an initial conversion premium of 35%, according to a news release.
Northland also priced on a bought-deal basis 9,375,000 shares of common stock at C$16.00 each for proceeds of about C$150 million.
The issues, which are subject to regulatory approval, were made via a syndicate of underwriters led by CIBC World Markets Inc. and BMO Capital Markets.
The debentures will have an initial maturity date of June 30, 2014, which will be extended automatically to June 30, 2019 upon closing of a previously announced agreement to acquire 60% equity interest in the Gemini Offshore Wind Project.
Gemini Offshore is a 600-megawatt wind project off the coast of the Netherlands in the North Sea with a total investment cost of about €2.8 billion and an investment cost to Northland of about C$500 million.
The debentures have an over-allotment option for up to another C$3.75 million, while the common shares have an over-allotment option for up to 468,750 shares.
Also concurrently with the offering, Northland will issue 3,125,000 common shares to Northland Power Holdings Inc., for about C$50 million of proceeds.
Proceeds will be used to fund a portion of Northland's equity commitment and subordinated loan to project Gemini and for general corporate purposes.
Based in Toronto, Northland Power is an independent power producer.
| Issuer: | Northland Power Inc.
|
| Issue: | Extendible convertible debentures
|
| Amount: | C$75 million
|
| Greenshoe: | C$3.75 million
|
| Maturity: | June 30, 2014, extendable to June 30, 2019
|
| Underwriters: | CIBC World Markets Inc., BMO Capital Markets
|
| Concurrent offering: | 9,375,000 shares at C$16.00 per share
|
| Concurrent offering: | 3,125,000 shares to Northland Power Holdings
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 35%
|
| Conversion price: | C$21.60
|
| Pricing date: | Feb 24
|
| Settlement date: | March 5
|
| Distribution: | Public offering
|
| Stock symbol: | Toronto: NPI
|
| Stock reference price: | C$16.00
|
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