OAKVILLE, ON, Nov. 28, 2018 /CNW/ - Algonquin Power &
Utilities Corp. (TSX/NYSE: AQN, AQN.PR.A) ("APUC" or the "Company")
announced today that it does not intend to exercise its right to
redeem all or part of the currently outstanding 4,800,000
Cumulative 5-Year Rate Reset Preferred Shares, Series A (the
"Series A Preferred Shares") on December 31,
2018. As a result, subject to certain conditions, the
holders of the Series A Preferred Shares have the right to convert
all or part of their Series A Preferred Shares, on a one-for-one
basis, into Cumulative Floating Rate Preferred Shares, Series B
(the "Series B Preferred Shares") on December 31, 2018 (the "Conversion Date") in
accordance with the terms and conditions of the Series A Preferred
Shares described in the short form prospectus of the Company dated
November 2, 2012.
Holders of Series A Preferred Shares who do not exercise their
right to convert their Series A Preferred Shares into Series B
Preferred Shares on the Conversion Date will retain their Series A
Preferred Shares.
The dividend rate applicable to the Series A Preferred Shares
for the 5-year period from December 31,
2018 to but excluding December 31,
2023, and the dividend rate applicable to the Series B
Preferred Shares for the 3-month period from December 31, 2018 to but excluding March 31, 2019, will be determined and announced
by the Company by way of a news release on December 3, 2018.
Beneficial owners of Series A Preferred Shares who wish to
exercise their conversion right during the conversion period, which
runs from December 3, 2018 until
December 17, 2018 at 5:00 p.m. (EST), should communicate as soon as
possible with their broker or other nominee for more information.
It is recommended that this be done well in advance of the deadline
in order to provide the broker or other nominee time to complete
the necessary steps. Any notices received after this deadline will
not be valid.
The foregoing conversion rights are subject to the conditions
that: (i) if APUC determines that there would remain outstanding on
the Conversion Date fewer than 1,000,000 Series B Preferred Shares,
after having taken into account all Series A Preferred Shares
tendered for conversion into Series B Preferred Shares, then
holders of Series A Preferred Shares will not be entitled to
convert their Series A Preferred Shares into Series B Preferred
Shares, and (ii) alternatively, if APUC determines that there would
remain outstanding on the Conversion Date fewer than 1,000,000
Series A Preferred Shares, after having taken into account all
Series A Preferred Shares tendered for conversion into Series B
Preferred Shares, then all remaining Series A Preferred Shares will
automatically be converted into Series B Preferred Shares without
the consent of the holders of Series A Preferred Shares, on a
one-for-one basis, on the Conversion Date.
In either case, APUC will give written notice to that effect to
the registered holder of Series A Preferred Shares no later than
December 24, 2018.
About Algonquin Power & Utilities Corp.
APUC is a diversified generation, transmission and distribution
utility with approximately U.S.$9
billion of total assets. Through its two business groups,
APUC provides rate regulated natural gas, water, and electricity
generation, transmission, and distribution utility services to over
760,000 connections in the United
States, and is committed to being a global leader in the
generation of clean energy through its ownership of, or interest
in, long term contracted wind, solar and hydroelectric generating
facilities representing approximately 1.7 GW of installed capacity.
With a team of over 2,300 talented employees, APUC delivers
continuing growth through an expanding pipeline of renewable energy
development projects, organic growth within its rate regulated
generation, distribution and transmission businesses, and the
pursuit of accretive acquisitions. APUC's common shares, Series A
preferred shares and Series D preferred shares are listed on the
Toronto Stock Exchange under the symbols AQN, AQN.PR.A, and
AQN.PR.D. APUC's common shares and Series A subordinated notes are
also listed on the New York Stock Exchange under the symbols AQN
and AQNA.
Visit APUC at www.algonquinpower.com and follow us on
Twitter @AQN_Utilities.
Caution Regarding Forward-Looking Information
Certain statements included in this news release constitute
"forward-looking information" within the meaning of applicable
securities laws in each of the provinces of Canada and the respective policies,
regulations and rules under such laws and "forward-looking
statements" within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 (collectively, "forward-looking
statements"). The words "expected", "intends" and similar
expressions are often intended to identify forward-looking
statements, although not all forward-looking statements contain
these identifying words. Specific forward-looking statements
contained in this news release include, but are not limited to, the
intention to not redeem the Series A Preferred Shares. These
statements are based on factors or assumptions that were applied in
drawing a conclusion or making a forecast or projection, including
assumptions based on historical trends, current conditions and
expected future developments. Since forward-looking statements
relate to future events and conditions, by their very nature they
require making assumptions and involve inherent risks and
uncertainties. APUC cautions that although it is believed that the
assumptions are reasonable in the circumstances, these risks and
uncertainties give rise to the possibility that actual results may
differ materially from the expectations set out in the
forward-looking statements. Material risk factors include those set
out in APUC's most recent annual and interim management's
discussion and analysis and most recent annual information form.
Given these risks, undue reliance should not be placed on these
forward-looking statements, which apply only as of their dates.
Other than as specifically required by law, APUC undertakes no
obligation to update any forward-looking statements to reflect new
information, subsequent or otherwise.
View original
content:http://www.prnewswire.com/news-releases/algonquin-power--utilities-corp-announces-conversion-rights-for-cumulative-5-year-rate-reset-preferred-shares-series-a-300757249.html
SOURCE Algonquin Power & Utilities Corp.