Innergex to issue preferred shares for USD 50m

Nov 21, 2012 - Canadian firm Innergex Renewable Energy (TSE:INE) today said it had agreed to issue series C redeemable fixed-rate preferred shares for CAD 50 million (USD 50.2m/EUR 39.1m) to a syndicate of underwriters.

The company, which operates wind, solar and hydropower facilities, will use the proceeds to partly repay its revolving term credit facility and for general corporate needs.

It will place 2 million of cumulative Series C shares at a price of CAD 25 apiece to the underwriters syndicate co-led by TD Securities Inc, National Bank Financial Inc and BMO Capital Markets for distribution to the public in Canada. Holders of the preferred stock will be entitled to a cumulative quarterly fixed dividend yielding 5.75% annually.

Innergex has granted the underwriters an over-allotment option for up to 300,000 shares at the same offering price. It is exercisable in 30 days upon closing the offering, which is expected on December 11. The issue depends on regulatory and other closing conditions.

The Series C Shares will be redeemable only after January 15, 2018.

(CAD 1 = USD 1.003/EUR 0.783)

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