EDMONTON, Alberta, Dec. 03, 2018 (GLOBE NEWSWIRE) -- Capital Power Corporation (TSX: CPX) (the Corporation and
together with its subsidiaries, Capital Power) announced today that it has notified registered shareholders of its Cumulative Rate
Reset Preference Shares, Series 3 (Series 3 Shares) (TSX: CPX.PR.C) of the Conversion Privilege and Dividend Rate Notice.
Subject to certain conditions, beginning on December 1, 2018 and ending at 5:00 p.m. (Toronto time) on December
17, 2018, each registered holder of Series 3 Shares will have the right to elect to convert any or all of their Series 3 Shares
into an equal number of Cumulative Floating Rate Preference Shares, Series 4 (Series 4 Shares) by delivering an Election Notice to
the Corporation.
If Capital Power does not receive an Election Notice from a holder of Series 3 Shares during the time fixed
therefor, then the Series 3 Shares shall be deemed not to have been converted (except in the case of an Automatic Conversion, see
below). Holders of the Series 3 Shares and the Series 4 Shares will have the opportunity to convert their shares again on
December 31, 2023, and every five years thereafter as long as the shares remain outstanding.
Effective December 31, 2018, on December 3, 2018, the Annual Fixed Dividend Rate for the Series 3 Shares was set
for the next five-year period at 5.45300%. Effective December 31, 2018, on December 3, 2018, the Floating Quarterly Dividend for
the Series 4 Shares was set for the first Quarterly Floating Rate Period (being the period from and including December 31, 2018, to
but excluding March 31, 2019) at 1.21882%. The Floating Quarterly Dividend Rate will be reset every quarter.
The Series 3 Shares are issued in “book entry only” form and, as such, the sole registered holder of the Series
3 Shares is CDS Clearing and Depository Services Inc. (CDS). All rights of beneficial holders of Series 3 Shares must be
exercised through CDS or the CDS participant through which the Series 3 Shares are held. The deadline for the registered
shareholder to provide notice of exercise of the right to convert Series 3 Shares into Series 4 Shares is 3:00 p.m. (MST) / 5:00
p.m. (EST) on December 17, 2018. Any Election Notices received after this deadline will not be valid. As such,
beneficial holders of Series 3 Shares who wish to exercise their rights to convert their shares should contact their broker or
other intermediary for more information and it is recommended that this be done well in advance of the deadline in order to provide
the broker or other intermediary with time to complete the necessary steps.
After December 17, 2018, (i) if Capital Power determines that there would remain outstanding on December 31,
2018, less than 1,000,000 Series 3 Shares, all remaining Series 3 Shares will be automatically converted into Series 4 Shares on a
one-for one basis effective December 31, 2018 (an Automatic Conversion); or (ii) if Capital Power determines that there would
remain outstanding after December 31, 2018, less than 1,000,000 Series 4 Shares, no Series 3 Shares will be permitted to be
converted into Series 4 Shares effective December 31, 2018. There are currently 6,000,000 Series 3 Shares outstanding.
The Toronto Stock Exchange (TSX) has conditionally approved the listing of the Series 4 Shares effective upon
conversion. Listing of the Series 4 Shares is subject to the Capital Power fulfilling all the listing requirements of the TSX
and upon approval, the Series 4 Shares will be listed on the TSX under the trading symbol CPX.PR.D.
For more information on the terms of, and risks associated with an investment in, the Series 3 Shares and the
Series 4 Shares, please see Capital Power’s prospectus supplement dated December 10, 2012 which is available on sedar.com or on Capital Power's website at capitalpower.com.
About Capital Power
Capital Power (TSX: CPX) is a growth-oriented North American power producer headquartered in Edmonton, Alberta. The
company develops, acquires, owns, and operates power generation facilities using a variety of energy sources. Capital Power owns
approximately 5,100 megawatts (MW) of power generation capacity at 25 facilities across North America. Approximately 1,000 MW of
owned generation capacity is in advanced development in Alberta, North Dakota, and Illinois.
For more information, please contact:
Media Relations:
Tricia Johnston
(780) 392-5817
tjohnston@capitalpower.com
|
Investor Relations:
Randy Mah
(780) 392-5305 or (866) 896-4636 (toll-free)
investor@capitalpower.com |
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