Proceeds to help fund acquisition of Odell wind power project
New York, Sept. 4 – Algonquin Power & Utilities Corp. said it privately placed C$70 million of subscription receipts with Emera Inc. to help fund its acquisition of the Odell wind power project.
The receipts are convertible into 7,865,170 of the company’s shares.
Algonquin announced the placement as part of its acquisition of the Odell project, a 200 MW wind power facility currently under construction in Cottonwood, Jackson, Martin and Watonwan Counties in Minnesota. Construction costs are estimated at $313.5 million.
The project qualifies for renewable energy production tax credits, and Algonquin expects that tax equity investors will provide $190.8 million of equity financing towards the costs of the project. The rest of the permanent financing will be arranged through the investment-grade bond platform of Algonquin’s power generation subsidiary.
Separately Algonquin announced on Thursday a C$150 million bought deal public offering of common shares via CIBC World Markets and TD Securities. Proceeds will be used to finance previously disclosed growth opportunities, to reduce amounts outstanding on its credit facilities and for general corporate purposes.
Algonquin is an Oakville, Ont.-based owner and operator of water, electricity and natural gas utilities in North America.
| Issuer: | Algonquin Power & Utilities Corp.
|
| Issue: | Subscription receipts
|
| Amount: | C$70 million
|
| Shares: | Receipts convertible into 7,865,170 shares
|
| Investor: | Emera Inc.
|
| Announcement date: | Sept. 4
|
| Stock symbol: | TSX: AQN
|
| Stock price: | C$9.06 at close Sept. 4
|
| Market capitalization: | C$1.87 billion
|
© 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.
