An anonymous director reports
ALGONQUIN POWER & UTILITIES CORP. ANNOUNCES PROPOSED EQUITY UNITS OFFERING
Algonquin Power & Utilities Corp. plans to conduct an underwritten marketed public offering of equity units in an expected aggregate stated amount of $900-million (U.S.), subject to market conditions and other factors. All amounts are shown in U.S. dollars unless otherwise noted.
In connection with the offering, the company expects to grant the underwriters an option to purchase, upon the same terms as the offering, up to an additional 15 per cent of the equity units issued in the offering, for a period of 13 days following pricing of the offering.
The company expects to use the net proceeds of the offering to finance or refinance investments in renewable energy generation projects or facilities, or other clean energy technologies in accordance with the company's green financing framework. This would be the fourth green offering by the company or its subsidiaries, and aligns with Algonquin's commitment to advancing a sustainable energy and water future.
Each equity unit will be issued in a stated amount of $50 and will initially consist of a contract to purchase common shares in the capital of the company and a 1/20, or 5-per-cent, undivided beneficial ownership interest in $1,000 principal amount of the company's remarketable senior notes expected to be due June 15, 2026. Pursuant to the purchase contracts, holders will be required to purchase common shares on June 15, 2024. The company intends to list the equity units (that are in the form of corporate units) on the New York Stock Exchange and expects trading to commence within 30 days of the date of initial issuance (subject to listing approval).
J.P. Morgan, Wells Fargo Securities, BMO Capital Markets and Morgan Stanley are acting as active book-running managers and representatives of the underwriters for the offering.
The offering is expected to be made to the public in each of the provinces of Canada and in the United States by means of a short-form base shelf prospectus and related prospectus supplement to be filed with applicable Canadian securities regulatory authorities, and which will form part of the company's effective shelf registration statement filed with the Securities and Exchange Commission. The short-form base shelf prospectus and the related prospectus supplement will contain important information about the equity units. Investors should read the short-form base shelf prospectus and the related prospectus supplement before making an investment decision.
A preliminary prospectus supplement related to the offering has been filed with the SEC and applicable Canadian securities regulatory authorities, and is available on the SEC's website and on SEDAR. Copies of the company's base shelf prospectus and the preliminary prospectus supplement relating to the offering may be obtained from J.P. Morgan Securities LLC at Broadridge Financial Solutions, 1155 Long Island Ave., Edgewater, N.Y., 11717, phone: 866-803-9204 or by e-mail at prospectus-eq_fi@jpmorgan.com; Wells Fargo Securities, 500 W 33rd St., New York, N.Y., 10001, phone: 800-326-5897 or by e-mail at cmclientsupport@wellsfargo.com; BMO Capital Markets Corp., 3 Times Square, 25th Floor, New York, N.Y., 10036, phone: 800-414-3627 or by e-mail at bmoprospectus@bmo.com; and Morgan Stanley & Co. LLC, 180 Varick St., 2nd Floor, New York, N.Y., 10014, phone: 866-718-1649 or by e-mail at prospectus@morganstanley.com.
About Algonquin Power & Utilities Corp. and Liberty
Algonquin Power & Utilities Corp., parent company of Liberty, is a diversified international generation, transmission and distribution utility with approximately $15-billion of total assets. Through its two business groups, the regulated services group and the renewable energy group, Algonquin is committed to providing safe, secure, reliable, cost-effective, and sustainable energy and water solutions through its portfolio of electric generation, transmission and distribution utility investments to over one million customer connections, largely in the United States and Canada. Algonquin is a global leader in renewable energy through its portfolio of long-term contracted wind, solar and hydroelectric generating facilities. Algonquin owns, operates and/or has net interests in over three gigawatts of installed renewable generation capacity.
Algonquin is committed to delivering growth and the pursuit of operational excellence in a sustainable manner through an expanding global pipeline of renewable energy and electric transmission development projects, organic growth within its rate-regulated generation, distribution and transmission businesses, and the pursuit of accretive acquisitions.
We seek Safe Harbor.