DEDHAM, Mass., Jan. 29, 2018 /PRNewswire/ -- Atlantic Power
Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the
"Company") announced today the closing of its public offering, on a
bought deal basis, in each of the provinces and territories of
Canada and the United States, of Cdn$100 million aggregate principal amount of
6.00% convertible unsecured subordinated debentures due
January 31, 2025 (the "Debentures")
at a public offering price of Cdn$1,000 per Debenture (the "Offering").
The Offering was underwritten by a syndicate of underwriters, led
by RBC Capital Markets.
The Debentures will be convertible, at the option of the holder,
into common shares of Atlantic Power at a conversion price of
Cdn$4.20 per common share, being a
ratio of approximately 238.0952 common shares per Cdn$1,000 principal amount of Debentures, subject
to customary adjustments. Atlantic Power has granted an
over-allotment option to the underwriters, exercisable at any time
up to 30 days after the date hereof, to acquire up to Cdn$15 million aggregate principal amount of
additional Debentures to cover the underwriters' over-allotment
position as of the closing date, if any. The Company received
net proceeds from the Offering, after deducting the underwriting
fee and expenses related to the Offering, of approximately
Cdn$94.7 million.
The Company intends to use the net proceeds from the Offering to
fund the redemption of all of the Company's 5.75% Series C
convertible unsecured subordinated debentures (current outstanding
balance of US$42.5 million) that
mature on June 30, 2019 and have a
par call date of June 30, 2017.
The Company intends to use the remainder of the net proceeds, if
any, to fund the partial redemption of the Company's 6.00% Series D
extendible convertible unsecured subordinated debentures (current
outstanding balance of Cdn$81.0
million) that mature on December 31,
2019 and have a par call date of December 31, 2017.
The Debentures were distributed pursuant to a prospectus
supplement dated January 23, 2018 to
the Company's short form base shelf prospectus dated December 19, 2017 filed with the securities
commissions and other similar regulatory authorities in each of the
provinces and territories of Canada, and pursuant to a prospectus
supplement dated January 23, 2018 to
the Company's base prospectus dated December
19, 2017 filed with the U.S. Securities and Exchange
Commission (the "SEC"). A copy of the Canadian prospectus
supplement and accompanying short form base shelf prospectus
relating to the Offering may be obtained for free under the
Company's profile on SEDAR at www.sedar.com or upon request by
contacting RBC Capital Markets at RBC Wellington Square, 8th Floor,
180 Wellington St. W., Toronto,
Ontario, M5J 0C2; Attn: Distribution Centre (Phone:
416-842-5349; E-mail: Distribution.RBCDS@rbccm.com); and a copy of
the U.S. prospectus supplement and accompanying base prospectus
relating to the Offering may be obtained for free by visiting EDGAR
on the SEC website at www.sec.gov or upon request by contacting RBC
Capital Markets at 3 World Financial Center, 200 Vesey Street, 8th
Floor, New York, New York, 10281;
Attention: Equity Syndicate (Phone: 877-822-4089, Email:
equityprospectus@rbccm.com).
About Atlantic Power
Atlantic Power owns and operates a diverse fleet of power
generation assets across nine states in the United States and two provinces in
Canada. The Company's power generation projects sell
electricity to utilities and other large commercial customers
largely under long-term power purchase agreements ("PPAs"), which
seek to minimize exposure to changes in commodity prices. The
aggregate electric generating capacity of this portfolio on a gross
ownership basis is approximately 1,793 megawatts ("MW"), and on a
net ownership basis is approximately 1,440 MW. Eighteen of
the projects are currently operational, totaling 1,633 MW on a
gross ownership basis and 1,280 MW on a net ownership basis.
Four projects, all in Ontario, are
not operational, three due to revised contractual arrangements with
the offtaker and another, Tunis,
has a forward-starting 15-year PPA that will commence with the
commercial operation of the plant before June 2019. Eighteen
of the power generation projects are majority-owned and directly
operated and maintained by the Company.
Atlantic Power's common shares trade on the New York Stock
Exchange under the symbol AT and on the Toronto Stock Exchange
under the symbol ATP. For more information, please
contact:
Atlantic Power Corporation
Investor Relations
(617) 977-2700
info@atlanticpower.com
Cautionary Note Regarding Forward-Looking Statements
This news release may include forward-looking statements within
the meaning of the U.S. federal securities laws and forward-looking
information under Canadian securities laws (referred to as
"forward-looking statements"). These statements can generally be
identified by the use of the words "outlook," "objective," "may,"
"will," "expect," "intend," "estimate," "anticipate," "believe,"
"should," "plans," "continue" or similar expressions suggesting
future outcomes or events. In particular, statements regarding
Atlantic Power's intention to use the proceeds as described above,
as well as the timing for the commencement of the Tunis contract, constitute forward-looking
statements. Forward-looking statements reflect Atlantic Power's
current expectations regarding future events and speak only as of
the date of this news release. These forward-looking statements are
based on a number of assumptions which may prove to be incorrect.
Forward-looking statements involve significant risks and
uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate
indications of whether or not or the times at or by which such
performance or results will be achieved. A number of factors could
cause actual results to differ materially from the results
discussed in the forward-looking statements, including, but not
limited to, the factors discussed under "Cautionary Statement
Regarding Forward-Looking Statements" and "Risk Factors" in the
filings Atlantic Power makes from time to time with the SEC
and Canadian securities regulators. Atlantic Power's business is
both competitive and subject to various risks. Although the
forward-looking statements contained in this news release are based
upon what Atlantic Power believes to be reasonable assumptions,
investors cannot be assured that actual results will be consistent
with these forward-looking statements, and the differences may be
material. Therefore, investors are urged not to place undue
reliance on Atlantic Power's forward-looking statements. These
forward-looking statements are made as of the date of this news
release and, except as expressly required by applicable law,
Atlantic Power assumes no obligation to update or revise them to
reflect new information, future events or otherwise.
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SOURCE Atlantic Power Corporation