Algonquin raises funds to pay for Atlantica Yield stake

A parabolic trough plans by Abengoa. Author: Jumanji Solar. License: Attribution 2.0 Generic

November 13 (Renewables Now) - Canadian utility Algonquin Power & Utilities Corp (TSE:AQN) announced on Friday it has raised some CAD 576 million (USD 453m/EUR 388m) in gross proceeds from a bought deal offering.

The company said in a press statement it will use the proceeds, in part, to finance its recently unveiled acquisition of a 25% stake in Atlantica Yield Plc (NASDAQ:ABY) from Spain's Abengoa SA (BME:ABG) for USD 607 million (EUR 520m). Atlantica Yield, a yieldco vehicle created by Abengoa, owns a portfolio of long-term contracted assets, including 1.7 GW of clean power generating capacity, mostly renewable, transmission lines and two desalination plants.

As part of the bought deal offering, Algonquin Power sold a total of 43.47 million common shares at a price of CAD 13.25 apiece. This includes the exercise in full of the underwriters' over-allotment option.

Algonquin will use any remaining proceeds for general corporate purposes, it said.

(CAD 1.0 = USD 0.787/EUR 0.674)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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