Algonquin Power unveils debt redemption, increased loan facility

Nov 20, 2012 - Canadian Algonquin Power & Utilities Corp (TSE:AQN) Monday unveiled plans to redeem its Series 3 7% convertible debentures and said it had expanded an existing credit line of its generation unit Algonquin Power Co.

The company plans to redeem on January 1, 2013 its unsecured subordinated debentures, originally maturing on June 30, 2017. Algonquin Power is to issue to debenture holders shares in the amount of CAD 62.2 million (USD 62.4m/EUR 49m), which is the current aggregate principal amount of debentures divided by 95% of the market price of the company's stock on the redemption date. Holders will also receive unpaid accrued interest on the redemption date.

As for the expanded senior credit facility, the amount available now is CAD 200 million, up from CAD 155 million previously. It matures on November 16, 2015. The facility was also fully unsecured after the security held over certain entities of the unit was released by the bank syndicate which is led by National Bank of Canada (TSE:NA), Algonquin said.

The addition funds under the credit line will enable Algonquin Power Co to finance the continued expansion of its non-regulated power generation operations, which include 23 renewable energy plants, chief financial officer David Bronicheski said.

(CAD 1.0 = USD 1.004/EUR 0.785)

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