New York, Oct. 13 - Atlantic Power Corp. priced C$70 million of convertible unsecured subordinated debentures with a 5.6% coupon and an initial conversion premium of 35%, according to a company news release.
The company also priced 5.245 million shares at $13.35 each for a total of $70.02 million. There is a greenshoe for a further 784,000 shares.
The debentures have a conversion price of C$18.10 - equivalent to $18.03 - and a conversion ratio of 55.2486. They mature on June 30, 2017.
There is an over-allotment option for up to C$10.5 million of additional debentures.
Previously, the deal was talked at C$50 million in size.
BMO Capital Markets is the bookrunner for the offering, which was originally unveiled in August.
Proceeds from both offerings will be used to repay $20 million of a revolving credit facility taken in June to partially fund the company's acquisition of a 27.6% equity interest in Idaho Wind Partners 1 LLC and to fund a $75 million investment in the Piedmont Green Power biomass project in Barnesville, Ga.
Any remaining proceeds will be used to fund additional growth opportunities and for general corporate purposes, including another potential acquisition that the company is currently considering.
Atlantic Power is a Boston-based independent power producer.
| Issuer: | Atlantic Power Corp.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$70 million
|
| Greenshoe: | C$10.5 million
|
| Maturity: | June 30, 2017
|
| Coupon: | 5.6%
|
| Price: | Par
|
| Yield: | 5.6%
|
| Conversion premium: | 35%
|
| Conversion price: | C$18.10 ($18.03)
|
| Conversion ratio | 55.2486
|
| Bookrunner: | BMO Capital Markets
|
| Pricing date: | Oct. 13
|
| Stock symbol: | Toronto: ATO, NYSE: AT
|
| Stock reference: | $13.35
|
| Market capitalization: | $816.89 million
|
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