Atlantic Power redeems 9% senior notes due 2018 for $330.4 million

By Marisa Wong

Madison, Wis., July 27 – Atlantic Power Corp. said it completed the redemption of its outstanding $310.9 million of 9% senior notes due November 2018 on Monday.

The notes were redeemed at 104.5 plus accrued interest to the redemption date, for a total amount of $330.4 million.

The company used cash proceeds from the recent sale of its wind generation portfolio to fund the redemption, according to a press release.

Expenses associated with the redemption totaling about $19.5 million will be recorded in the company’s financial results for the third quarter.

Pro forma for the redemption of the senior notes, the company’s consolidated debt is now about $1.1 billion. This has been reduced roughly $726 million on a net basis since year-end 2013, including $249 million of project debt that was assumed by the buyer of the company’s wind generation portfolio. In addition, since year-end 2013, the company has reduced its share of equity-owned project debt by about $76 million, most of which was associated with the sale of the wind generation portfolio, the release said.

“The redemption of our most expensive debt is the latest step in our commitment to strengthen our financial position by reducing costs and reducing leverage. This action also improves our medium-term maturity profile. Over the past six quarters, we have reduced our total debt on a net basis by approximately $800 million. We also continue to amortize our term loan and project-level debt over time, and expect that to further strengthen our balance sheet,” president and chief executive officer James J. Moore Jr. said in the release.

Following the redemption, the company’s remaining corporate debt consists of $305 million of convertible debentures, which mature in 2017 and 2019. The company said it continues to explore opportunities to reshape these maturities with a goal of further improving its credit profile.

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

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