Atlantic Power to close I Squared transaction with or without debentureholder approval

Chicago, April 15 – Atlantic Power Corp. and wholly owned subsidiary Atlantic Power LP said that they are working with infrastructure funds managed by I Squared Capital Advisors (US) LLC to close the acquisition transaction without the approval of the debentureholders of the company’s 6% series E convertible subordinated debentures due Jan. 31, 2025, according to a press release.

The transaction is expected to move forward without the approval of the series E holders unless a sufficient number of convertibles debentures are voted in favor of the transaction as currently structured.

Debentureholders will still be able to receive a make-whole premium based on the indenture governing the convertibles.

As previously reported, the company was seeking an amendment to the indenture to include a mandatory redemption obligation on the part of Atlantic Power Ltd., conditional on closing of the transaction, to redeem all of the outstanding notes for consideration equal to 106.071 of the principal amount of notes outstanding, plus interest.

A meeting that was scheduled for debentureholders at 10 a.m. ET on April 15 is being adjourned until 10 a.m. ET on April 29.

The cut-off time for proxies or voting instructions is 10 a.m. ET on April 27.

Unless a sufficient number of convertible holders vote in favor, it is expected that the adjourned debentureholder meeting will be canceled and the condition precedent to the transaction that the holders of the convertible debentures approve the transaction will be mutually waived.

The transaction remains subject to the satisfaction of other conditions, including court approval of the transaction, approval of the holders of convertible debentures, certain remaining regulatory approvals and third-party consents.

The transaction has already received approval from common shareholders, preferred shareholders of Atlantic Power Preferred Equity Ltd. and medium-term noteholders of Atlantic Power LP.

The acquisition is expected to close in the second quarter of 2021.

Dedham, Mass.-based Atlantic Power owns and operates a fleet of power generation assets.

© 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.