OAKVILLE, ON, Jan. 20, 2012 /CNW/ - Algonquin Power & Utilities Corp.
("APUC") (TSX: AQN), today announced that it has provided the holders
of its Series 2A 6.35% convertible unsecured subordinated debentures
due November 30, 2016 ("Debentures") (TSX:AQN.DB.A) notice of its
intention to redeem for equity, effective February 24, 2011
("Redemption Date"), all of the issued and outstanding Debentures.
"With APUC's current lower cost of capital, redeeming these relatively
high cost Debentures for equity represents an accretive transaction for
APUC on both an earnings per share and cash flow per share basis",
stated David Bronicheski, Chief Financial Officer of APUC. "This
redemption further strengthens our investment grade balance sheet and
continues to lower our cost of capital."
The redemption will be effected in accordance with the terms and
definitions of the trust indenture governing the Debentures. APUC will
satisfy its obligation to pay holders of Debentures
("Debentureholders") by issuing and delivering the number of freely
tradeable APUC shares obtained by dividing the aggregate principal
amount of Debentures, currently $59,957,000.00, by 95% of the current
market price (as defined in the trust indenture governing the
Debentures) of APUC shares on the Redemption Date. Unpaid accrued
interest on the Debentures will be paid in cash at the time of
Debentureholders who are not directly the registered holder of the
Debentures should contact the financial institution, broker or other
intermediary through which they hold their Debentures to discuss the
receipt of their redemption proceeds.
ABOUT ALGONQUIN POWER & UTILITIES CORP.
Through its distinct operating subsidiaries, APUC owns and operates a
diversified portfolio of $1.2 billion of clean renewable electric
generation and sustainable utility distribution businesses in North
America. Liberty Utilities Co., APUC's regulated distribution utility
business, provides regulated water and electric utility services to
more than 120,000 customers with a portfolio of 22 water and electric
utility systems. Pursuant to previously announced agreements, Liberty
Utilities Co. is committed to acquiring Granite State Electric Company,
a New Hampshire electric distribution company, EnergyNorth Natural Gas
Inc., a regulated natural gas distribution utility and certain
regulated natural gas distribution assets in Missouri, Illinois and
Iowa, which together serve approximately 213,000 customers. Algonquin
Power Co. (APCo), APUC's electric generation subsidiary, includes 45
renewable energy facilities and 12 thermal energy facilities
representing more than 460 MW of installed capacity. APUC and its
operating subsidiaries deliver continuing growth through an expanding
pipeline of greenfield and expansion renewable power and clean energy
projects, organic growth within its regulated utilities and the pursuit
of accretive acquisition opportunities. APUC's common shares and
convertible debentures are traded on the Toronto Stock Exchange under
the symbols AQN, AQN.DB.A and AQN.DB.B. Visit Algonquin Power &
Utilities Corp. at www.AlgonquinPowerandUtilities.com.
SOURCE Algonquin Power
For further information:
Algonquin Power & Utilities Corp.
2845 Bristol Circle, Oakville, Ontario, L6H 7H7
Telephone: (905) 465-4500