Atlantic Power calls 9% notes, explores other ways to ‘reshape’ debt

By Angela McDaniels

Tacoma, Wash., June 26 – Atlantic Power Corp. said it will redeem its $310.9 million of outstanding 9% senior notes due November 2018.

The notes will be redeemed in roughly 30 days at a redemption price equal to 104.5% of par plus accrued interest, according to a company news release.

The company will fund the redemption with the proceeds of the sale of its wind portfolio to an affiliate of SunEdison, Inc. for roughly $347 million, net of closing adjustments.

“The sale of our wind projects and the redemption of our senior unsecured notes achieve two major components of our plan – cost reduction, including interest expense, and debt reduction. The combined impact is cash flow positive on an annualized basis,” James Moore Jr., Atlantic Power president and chief executive officer, said in a company news release.

“These actions also strengthen our balance sheet by reducing our leverage and improve our medium-term debt maturity profile.

“We are continuing to explore other opportunities to reshape our remaining corporate debt with a goal of further improving our creditworthiness.”

Atlantic Power owns and operates power generation assets and is based in Dedham, Mass.

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