/NOT FOR DISSEMINATION OR DISTRIBUTION IN
THE UNITED STATES AND NOT FOR
DISTRIBUTION TO UNITED STATES
NEWSWIRE SERVICES OR TO U.S. PERSONS./
OAKVILLE, ON, Jan. 11, 2017 /CNW/ - Algonquin Power &
Utilities Corp. ("APUC") (TSX: AQN, NYSE: AQN) announced today that
Algonquin Power Co. ("APCo"), APUC's wholly-owned, renewable power
generation subsidiary, offered for sale CDN$300 million 4.09% senior unsecured debentures
with a maturity date of February 17,
2027 (the "APCo Debentures") pursuant to a private placement
in Canada and the United States (the "Offering"). The APCo
Debentures were offered at a price of $99.929 per $100.00
principal amount, resulting in an effective yield to maturity of
4.099% per annum.
Net proceeds from the APCo Debentures will be used to repay
existing indebtedness and for APCo's general corporate purposes.
Concurrent with the Offering, APCo is entering into a cross
currency swap, coterminous with the APCo Debentures, to convert the
Canadian dollar denominated proceeds from the Offering into U.S.
dollars, resulting in an effective interest rate throughout the
term of the APCo Debentures of approximately 4.85%.
"APCo has experienced significant growth since our last bond
offering in 2014, having added over 430 MW of renewable wind and
solar powered generating stations in both Canada and the U.S.," commented David Bronicheski, Chief Financial Officer of
APUC. "This most recent bond offering demonstrates the value
of APCo's bond platform to provide efficient access to the debt
capital markets while at the same time delivering our bondholders
the benefits of a larger, more diversified portfolio of long-term
contracted renewable power assets."
APCo has been provided long-term issuer credit ratings of "BBB
(low)", "Under Review – Developing Implications" by DBRS Limited
and "BBB", with a "negative" outlook, by Standard & Poor's
Rating Service. APUC expects the APCo Debentures will receive final
ratings of "BBB (low)", "Under Review – Developing Implications" by
DBRS Limited and "BBB" by S&P.
The APCo Debenture offering is being co-led by National Bank
Financial Inc. and CIBC World Markets Inc. and is expected to close
on or about January 17, 2017.
THE OFFER AND SALE OF THE ALGONQUIN POWER CO. DEBENTURES HAS
NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT") OR THE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES. THEREFORE, THIS
COMMUNICATION DOES NOT CONSTITUTE AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY OF THE DEBENTURES IN
THE UNITED STATES AND THE
DEBENTURES MAY NOT BE SOLD IN THE UNITED
STATES OR TO U.S. PERSONS (AS DEFINED IN RULE 902(K) OF
REGULATIONS UNDER THE SECURITIES ACT), EXCEPT PURSUANT TO AN
EXEMPTION FROM THE REGISTRATION REQUIREMENT OF THE SECURITIES ACT
AND APPLICABLE STATE SECURITIES LAWS. ACCORDINGLY, THE ALGONQUIN
POWER CO. DEBENTURES ARE BEING OFFERED ONLY (1) TO A LIMITED NUMBER
OF QUALIFIED INSTITUTIONAL ACCREDITED INVESTORS IN TRANSACTIONS
EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
(2) OUTSIDE THE UNITED STATES IN
COMPLIANCE WITH REGULATIONS AND THE APPLICABLE LAWS OF THE
JURISDICTIONS WHERE THOSE OFFERS AND SALES OCCUR.
About Algonquin Power & Utilities Corp.
APUC is a North American diversified generation, transmission
and distribution utility with $10
billion in total assets. The distribution business group
provides rate regulated water, electricity and natural gas utility
services to over 782,000 customers in the
United States. The generation business group owns a
portfolio of regulated and long-term contacted North American based
wind, solar, hydroelectric and thermal powered generating
facilities representing more than 2,500 MW of installed capacity.
The transmission business group invests in rate regulated electric
transmission and natural gas pipeline systems in the United States and Canada. APUC delivers continuing growth
through an expanding pipeline of renewable energy development
projects, organic growth within its regulated distribution and
transmission businesses, and the pursuit of accretive acquisitions.
Common shares, preferred shares, and instalment receipts are traded
on the Toronto Stock Exchange under the symbols AQN, AQN.PR.A,
AQN.PR.D, and AQN.IR. APUC's common shares are also listed on the
New York Stock Exchange under the symbol AQN. Visit APUC at
www.AlgonquinPowerandUtilities.com and follow us on Twitter
@AQN_Utilities.
Caution Regarding Forward-Looking Information
Certain matters discussed in this press release are
"forward-looking statements" within the meaning of applicable
securities laws. Statements that are not historical facts,
including statements about beliefs, expectations, estimates,
projections, goals, forecasts, assumptions, risks and
uncertainties, are forward-looking statements. Forward-looking
statements are often characterized by the use of words such as
"believes," "estimates," "expects," "projects," "may," "intends,"
"plans," "anticipates," "pro forma," "predicts," "seeks," "could,"
"would," "will," "can," "continue" or "potential" and the negative
of these terms or other comparable or similar terminology or
expressions. The forward-looking statements in this press release
include, without limitation, statements relating to the anticipated
closing date of the debenture financing, the intended use of
proceeds and the final rating of the APCo Debentures. These
statements reflect APUC management's current beliefs and are based
on information currently available to APUC. Certain factors or
assumptions have been applied in drawing the conclusions contained
in the forward-looking statements (some of which may prove to be
incorrect). APUC cautions readers that a number of factors could
cause actual results, performance or achievement to differ
materially from the results discussed or implied in the
forward-looking statements.
Additional detailed information about these assumptions, risks
and uncertainties is included in APUC's securities regulatory
filings, including under the heading "Enterprise Risk Management"
in APUC's annual Management's Discussion and Analysis and in its
Annual Information Form, which can be found on SEDAR at
www.sedar.com. Except as required by law, APUC disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
SOURCE Algonquin Power & Utilities Corp.