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)