Board chairman increases stake in company to 35%
By Angela McDaniels
Tacoma, Wash., Feb. 24 - Northland Power Inc. will issue C$50 million of common shares to Northland Power Holdings Inc. on a private placement basis.
The 3,125,000 shares will be sold for C$16.00 each, according to a company news release.
The investor is a company controlled by chairman of the board James Temerty.
The placement will close concurrently with a public bought-deal offering of C$150 million of common shares in satisfaction of pre-emptive rights.
After giving effect to the private placement and the bought-deal offering, Temerty, his associates and his affiliates will collectively hold 35% of Northland on a fully diluted basis.
The price is a 2.8% discount to the company's $16.46 closing share price on Feb. 21 and equal to the price Northland is charging in the bought-deal offering.
Northland has entered into agreements to acquire a 60% equity interest in the Gemini Offshore Wind Project off the coast of the Netherlands. The proceeds of the offering and the private placement will be used to fund a portion of Northland's equity commitment and subordinated loan to project Gemini and for general corporate purposes.
The company also priced C$75 million of 5% extendible convertible subordinated debentures.
Toronto-based Northland develops, builds, owns and operates facilities that produce natural gas, wind, solar and hydro energy.
| Issuer: | Northland Power Inc.
|
| Issue: | Common shares
|
| Amount: | C$50 million
|
| Shares: | 3,125,000
|
| Price: | C$16.00
|
| Warrants: | No
|
| Investor: | Northland Power Holdings Inc.
|
| Pricing date: | Feb. 24
|
| Stock symbol: | TSX Venture: NPI
|
| Stock price: | C$16.46 at close Feb. 21
|
| Market capitalization: | C$2.18 billion
|
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