New Issue: Atlantic Power prices $460 million 9% notes due 2018 to yield 9½%

By Paul A. Harris

Portland, Ore., Oct. 26 - Atlantic Power Corp. priced a $460 million issue of 9% seven-year senior notes (B1/BB-/) at 97.471 to yield 9½% on Wednesday, according to an informed source.

The yield printed 25 basis points beyond the wide end of the 9% to 9¼% price talk.

Morgan Stanley & Co. LLC and TD Securities (USA) LLC were the joint bookrunners.

The Boston-based independent power producer plans to use the proceeds to fund a portion of the cash portion of its acquisition of Capital Power Income LP and to repay Capital Power Income's revolver.

Any remaining proceeds would be used to fund additional growth opportunities and for general corporate purposes.

Issuer:	Atlantic Power Corp.
Face amount:	$460 million
Proceeds:	$448.37 million
Maturity:	Nov. 15, 2018
Securities:	Senior notes
Bookrunners:	Morgan Stanley & Co. LLC, TD Securities (USA) LLC
Co-manager:	Macquarie Capital (USA) Inc.
Coupon:	9%
Price:	97.471
Yield:	9½%
Spread:	784 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Nov. 15, 2014, then callable at 104.5, 102.25, par on and after Nov. 15, 2016
Equity clawback:	35% at 109 until Nov. 15, 2014
Change-of-control put:	101%
Trade date:	Oct. 26
Settlement date:	Nov. 4
Ratings:	Moody's: B1
	Standard & Poor's: BB-
Distribution:	Rule 144A with registration rights
Price talk:	9% to 9¼%
Marketing:	Roadshow

© 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.