EDMONTON, June 15, 2011 /CNW/ - Capital Power L.P., the legal entity
that directly and indirectly holds substantially all of Capital Power
Corporation's assets (TSX: CPX) announced today that its indirect
subsidiary, Capital Power U.S. Financing LP ("the Issuer"), has closed
a US$295 million private placement of senior notes. The net proceeds
from the transaction will primarily be used to fund growth initiatives
including the recent acquisitions of three New England facilities and
for general corporate purposes.
The senior notes consist of two notes with 10 and 15-year terms. The
10-year senior note has a principal amount of US$230 million that
matures in May 2021 with a coupon rate of 5.21%. The 15-year senior
note has a US$65 million principal amount and matures in May 2026 with
a coupon rate of 5.61%.
"This US dollar private placement supports our long-term debt financing
for our recent New England acquisitions," said Stuart Lee, Senior Vice
President & CFO. "The transaction improves the company's financial
flexibility and further extends the debt maturity profile. In addition,
the US dollar-denominated debt will act as a natural foreign exchange
hedge to the US dollar cash flows generated from these facilities."
Bank of America Merrill Lynch was the sole financial institution that
led the private placement.
About Capital Power Corporation
Capital Power is a growth-oriented North American independent power
producer, building on more than a century of innovation and reliable
performance. The Company's vision is to be recognized as one of North
America's most respected, reliable and competitive power generators.
Headquartered in Edmonton, Alberta, Capital Power has interests in 34
facilities in Canada and the U.S. totaling nearly 4,900 megawatts of
generation capacity. Capital Power and its subsidiaries develop,
acquire and optimize power generation from a wide range of energy
SOURCE Capital Power Corporation
For further information: