Algonquin Power sells CAD 150m in senior debt

Nov 29, 2012 - Canadian Algonquin Power & Utilities Corp (TSE:AQN) today said its non-regulated power producing unit Algonquin Power Co (APCo) had issued CAD 150 million (USD 151.3m/EUR 116.5m) in senior unsecured debentures due February 2021.

The company has sold the 4.83% debentures in a private placement at a price of CAD 99.94 per CAD 100,000 principal amount in Canada and the US. It will use the proceeds mainly to fund the remaining part of the purchase of a controlling stake in US wind farm portfolio of 400 MW.

Simultaneously, APCo is entering into a cross currency swap to convert the Canadian dollar denominated offering into US dollars, resulting in a 4.40% interest rate over the term of the debentures.

APCo has received a BBB (low) long-term issuer rating with a "stable" outlook by DBRS and BBB- rating with a "positive" outlook by Standard & Poor's Rating Service. Canadian securities broker National Bank Financial and BMO Capital Markets, a unit of Canadian Bank of Montreal (TSE:BMO), are co-leading the offering.

APCo operates 23 renewable energy plants and seven thermal energy facilities totalling over 460 MW in capacity.

(CAD 1 = USD 1.008/EUR 0.777)

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