This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated May 15, 2020 to its short form base shelf prospectus dated April 3, 2020. All amounts are shown in United States dollars (“$”) unless otherwise indicated. 1
Strategic acquisition of a fully regulated electric utility reinforces AQN’s leadership in the energy transition
Key Highlights
- Expected to add over $2 billion 2 of regulated rate base assets in a favourable regulatory jurisdiction.
- Expected to be supportive of AQN’s overall Adjusted Net Earnings 3 per share growth rate underpinned by further regulated asset growth.
- Intention to leverage the Company’s “greening the fleet” capabilities, with an opportunity to replace over 1 GW of rate based fossil fuel generation with renewable energy.
- Delivers compelling value with expected rate base acquisition multiple of 1.3x based on expected mid-year 2022 rate base of $2.2 billion.
- Expected to be accretive to AQN’s Adjusted Net Earnings per share in the first full year of ownership and to generate mid-single digit percentage accretion thereafter.
- Aligns with AQN’s target to achieve net-zero greenhouse gas emissions (scope 1 and 2) by 2050.
- Kentucky Power will maintain its headquarters in Kentucky, and the Transaction is expected to enhance investment and employment in the state.
- Concurrent C$800 million ($646 million) bought deal common equity financing will fund a portion of the Transaction purchase price. Following closing of the financing, the Company does not expect to raise additional capital by way of issuance of common equity through mid-2022, being the expected timing for closing of the Transaction.
- Financing plan designed to maintain investment grade credit ratings.