/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR
DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES./
OAKVILLE, ON, Jan. 17, 2014 /CNW/ - Algonquin Power & Utilities Corp.
("APUC") (TSX: AQN) today announced that Algonquin Power Co. ("APCo"),
APUC's non-regulated power generation subsidiary, has completed the
previously announced private placement offering in Canada and the
United States (the "Offering") of CDN$200 million 4.65% senior
unsecured debentures with a maturity date of February 15, 2022 (the
"APCo Debentures") pursuant to a private placement.
The APCo Debentures were sold at a price of $99.864 per $100.00 principal amount, resulting in an effective yield to
maturity of 4.671% per annum. Concurrent with the Offering, APCo
entered into a cross currency swap, coterminous with the APCo
Debentures, to convert the Canadian dollar denominated Offering into
U.S. dollars, resulting in an effective interest rate throughout the
term of the APCo Debentures of approximately 4.773%.
Net proceeds from the APCo Debentures will be used for one or more of
the following uses: towards financing the acquisition of the remaining
40% ownership interest in its Senate, Sandy Ridge and Minonk wind farms
in the U.S., to reduce amounts outstanding on project debt related to
its Shady Oaks wind farm, to reduce amounts outstanding under its bank
credit facility and for general corporate purposes. Regulatory approval
in respect of the acquisition of the remaining 40% ownership interest
in the three U.S. wind farms has been received and closing is expected
to occur on or before January 31, 2014.
APCo has been provided long-term issuer credit ratings of "BBB", with a
"stable" outlook, by Standard & Poor's Rating Service and "BBB (low)",
with a "stable" trend, by DBRS Limited.
The APCo Debenture offering was co-led by National Bank Financial and
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
REGULATION S 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 REGULATION S AND THE APPLICABLE LAWS
OF THE JURISDICTIONS WHERE THOSE OFFERS AND SALES OCCUR.
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified $3.2
billion portfolio of regulated and non-regulated utilities in North
America. The regulated utility business provides water, electricity and
natural gas utility services to over 470,000 customers through a
portfolio of regulated generation, transmission and distribution
utility systems. The non-regulated electric generation subsidiary owns
or has interests in renewable energy and thermal energy facilities
representing more than 1,100 MW of installed capacity. Algonquin Power
& Utilities Corp. delivers continuing growth through an expanding
pipeline of renewable power and clean energy projects, organic growth
within its regulated utilities and the pursuit of accretive acquisition
opportunities. Common shares and preferred shares are traded on the
Toronto Stock Exchange under the symbols AQN and AQN.PR.A respectively.
Visit Algonquin Power and Utilities at www.AlgonquinPowerandUtilities.com and follow us on Twitter @AQN_Utilities.
Caution Regarding Forward-Looking Information
Certain statements included in this news release contain information
that is forward-looking within the meaning of certain securities laws,
including information and statements regarding prospective results of
operations, financial position or cash flows. These statements,
including the intended use of proceeds from the debenture financing,
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 the management's discussion and
analysis section of APUC's most recent annual report, quarterly report,
and APUC's 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
or information to reflect new information, subsequent or otherwise.
SOURCE: Algonquin Power & Utilities Corp.
For further information:
Algonquin Power & Utilities Corp.
2845 Bristol Circle, Oakville, Ontario, L6H 7H7
Telephone: (905) 465-4500