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Algonquin Power & Utilities Corp T.AQN

Alternate Symbol(s):  AQN | T.AQN.PR.A | T.AQN.PR.D | AGQPF

Algonquin Power & Utilities Corp. is a Canada-based diversified international generation, transmission, and distribution company. The Company through its two business groups, the Regulated Services Group, and the Renewable Energy Group, provides 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. The Company is engaged in renewable energy through its portfolio of long-term contracted wind, solar, and hydroelectric generating facilities. The Company owns, operates, and/or has net interests in over four gigawatts (GW) of installed renewable energy capacity. The Company is focused on its 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.


TSX:AQN - Post by User

Comment by Maerskon Dec 08, 2022 10:50pm
455 Views
Post# 35160913

RE:Good analysis

RE:Good analysis
A good general overview, but missing some details.
 
"As we can see, AQN has senior unsecured notes of $1.15 billion at a rate of 1.18%. Will the interest rate be below or near 1.18% by the time these notes mature and AQN needs to refinance them? This could be a potential problem for AQN in the next few years. "
 
Those 1.18% notes (Green Equity Units) do not require refinancing as they automatically convert to equity in 2024, although it seems that the coupon is paid until 2026. Icing on the cake, I suppose. Classified as "non-dilutive" by AQN so no worries.
 
AQN's Green Equity Units:
"Pursuant to the purchase contract forming part of each outstanding Green Equity Unit, holders are required to purchase AQN common shares on June 15, 2024. The minimum settlement rate under each purchase contract is 2.7778 common shares and the maximum settlement rate is 3.3333 common shares, resulting in a minimum of 63,889,400 common shares and a maximum of 76,665,900 common shares issuable on settlement of the purchase contracts."
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