/NOT FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN
THE UNITED STATES/
EDMONTON, Oct. 10, 2013 /CNW/ - Capital Power Corporation (TSX: CPX)
("Capital Power") and EPCOR Utilities Inc. ("EPCOR") announced today
the closing of the previously announced offering of 9,600,000 common
shares of Capital Power at a price of $21.00 per common share for
aggregate gross proceeds to EPCOR of $201,600,000. The underwriting
syndicate for the offering was co-led by RBC Capital Markets, CIBC and
Scotiabank as bookrunners. The underwriters maintain an over-allotment
option to purchase up to an additional 1,440,000 common shares at
$21.00 per common share, exercisable in whole or in part at any time up
to 30 days after today's closing.
Following today's closing, EPCOR indirectly owns approximately 19% of
the common shares of Capital Power. EPCOR plans to eventually sell all
or a substantial portion of its remaining interest in Capital Power
subject to market conditions, its requirements for capital and other
circumstances that may arise in the future.
Because EPCOR's ownership interest is below 20% following today's
closing, EPCOR now has the right to nominate and elect only two
representatives to Capital Power's Board of Directors. Accordingly,
Messrs. Robert Phillips and Donald Lowry voluntarily tendered their
resignations. The Board then resolved to reappoint Mr. Lowry to
continue serving as a director and as the Chair of Capital Power's
Board until the Corporation's next annual meeting of shareholders in
April, 2014. Mr. Lowry will continue to recuse himself from any board
decisions regarding business between Capital Power and EPCOR until the
Board is satisfied that there has been an appropriate cooling off
"On behalf of the Board of Directors and the Company, I would like to
thank Bob Phillips for his contributions as Board member over the past
4 years", said Brian Vaasjo, President and CEO of Capital Power. "He
played a large part in Capital Power's transition to a publicly traded
company and its current strategy and direction."
Additional information on EPCOR's special voting shares, governance at
Capital Power, and Board of Director profiles are disclosed in Capital
Power's 2013 Management Proxy Circular that is available on the
company's website and also filed on SEDAR (www.sedar.com).
Certain information in this news release relating to EPCOR is
forward-looking within the meaning of Canadian securities laws as it
relates to anticipated financial performance, events or strategies.
When used in this context, words such as "will", "anticipate",
"believe", "plan", "intend", "target" and "expect" or similar words
suggest future outcomes. The purpose of forward-looking information is
to provide investors with management's assessment of future plans and
possible outcomes and may not be appropriate for other purposes.
Readers are cautioned not to place undue reliance on forward-looking
statements as actual results could differ materially from the plans,
expectations, estimates or intentions expressed in the forward-looking
statements. Except as required by law, EPCOR disclaims any intention
and assumes no obligation to update any forward-looking statement even
if new information becomes available, as a result of future events or
for any other reason.
About Capital Power
Capital Power (TSX: CPX) is a growth-oriented North American power
producer headquartered in Edmonton, Alberta. The company develops,
acquires, operates and optimizes power generation from a variety of
energy sources. Capital Power owns more than 3,600 megawatts of power
generation capacity at 16 facilities across North America. An
additional 595 megawatts of owned generation capacity is under
construction or in advanced development in Alberta and Ontario.
Capital Power's website is: www.capitalpower.com.
About EPCOR Utilities Inc.
EPCOR's wholly-owned subsidiaries build, own and operate electrical
transmission and distribution networks, water and wastewater treatment
facilities and infrastructure in Canada and the United States. The
company's subsidiaries also provide electricity and water services and
products to residential and commercial customers. EPCOR, headquartered
in Edmonton, Alberta, is an Alberta Top 60 employer. EPCOR's website is
SOURCE: Capital Power Corporation
For further information:
(780) 392-5305 or (866) 896-4636 (toll-free)
EPCOR Utilities Inc.
(780) 969-8245 or (877) 969-8280 (toll-free)