By Rebecca Melvin
New York, Sept. 24 - Northland Power Income Fund priced an upsized C$80 million of five-year convertibles on a bought-deal basis at par to yield 6.25% with an initial conversion premium of 20%, according to a news release.
There is an over-allotment option to purchase up to an additional C$12 million of debentures.
Initially the deal was expected to be C$60 million in size.
Northland Power also sold 5.83 million trust units at a price of C$10.35 per unit, with an over-allotment option of 874,500 units. If the options are exercised in full, total gross proceeds from the financing will be about C$161 million.
The debenture issue was made via a syndicate of underwriters led by CIBC World Markets Inc.
Proceeds will be used to finance the fund's investment in a peaking power facility to be built near Spy Hill, Saskatchewan.
Earlier Thursday, the fund announced it had entered into a 25-year power purchase agreement with SaskPower to supply peaking power to the Saskatchewan utility beginning Dec. 1, 2011.
Remaining proceeds will be used to finance the fund's remaining commitments related to its Jardin d'Eole and Thorold projects, now nearing completion, and for other business purposes, including repayment of existing credit facilities.
The debentures, which mature Dec. 31, 2014, are non-callable for three years until Dec. 31, 2012. After that and prior to Dec. 31, 2013, the debentures may be redeemed subject to a price hurdle of 125% of the conversion price.
Based in Toronto, Northland Power has economic interests in 10 power projects totaling over 1,100 megawatts, located in the United States, Canada, and Germany.
| Issuer: | Northland Power Income Fund
|
| Issue: | Convertible unsecured subordinated debentures
|
| Joint lead managers: | CIBC World
|
| Amount: | C$80 million, upsized from C$60 million
|
| Greenshoe: | C$12 million
|
| Maturity: | Dec. 31. 2014
|
| Concurrent offering: | 5.83 million trust units at C$10.35 per unit
|
| Coupon: | 6.25%
|
| Price: | Par
|
| Yield: | 6.25%
|
| Conversion premium: | 20%
|
| Conversion price: | C$12.42
|
| Pricing date: | Sept. 24
|
| Settlement date: | Oct. 15
|
| Distribution: | Public offering
|
| Stock symbol: | TSX: NPI.UN
|
| Stock reference price: | C$10.35
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
