Algonquin Power subsidiary to sell debentures for CAD 100m

Jul 19, 2011 - Canadian clean power producer Algonquin Power & Utilities Corp (TSE:AQN), or APUC, said Monday its power generation unit Algonquin Power Co planned to sell CAD 100 million (USD 104.6m/EUR 73.7m) in senior unsecured debentures.

The debentures will be offered on a private placement basis in Canada. The subsidiary will use the proceeds to repay existing debt that matures in October 2011 related to its St Leon wind farm project; to trim amounts outstanding under its senior credit facility; and for general corporate purposes.

After the placement is completed, Algonquin Power Co will not have any near-term debt maturities.

National Bank Financial and BMO Capital Markets are leading the debenture offering. DBRS Ltd has given the debentures a provisional credit rating of BBB low with "stable" trend, while Standard & Poor's have assigned a BBB-/"stable" rating.

(CAD 1.0 = USD 1.046/EUR 0.737)

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