Algonquin Power & Utilities Corp (TSX: AQN) (NYSE: AQN) today announced the pricing for their upsized underwritten public offering of 20,000,000 equity units for total gross proceeds of approximately $1 billion.
Each unit is to be issued at a price of $50, consisting of a contract to purchase common shares of the company paired with a 5%, undivided beneficial ownership interest in a $1,000 principal amount of Algonquin’s senior notes, due the 15th of June 2026. Alongside the purchase contracts, shareholders are required to purchase common shares on June 15, 2024.
The equity units are expected to bear interest at a rate of 7.75% per year, consisting of the senior notes bearing interest at a rate of 1.18% per year, while the purchase contract related to common shares is expected to see quarterly contract adjustment payments at a rate of 6.57% per year. The reference price of the equity portion meanwhile is $15.00 per common share, resulting in a settlement rate of 2.7778 common shares at a minimum.
Algonquin has granted the underwriters the option to purchase up to an additional 3,000,000 equity units for 13 days, under the same terms as the offering,
The company plans to use the net proceeds of the offering to finance investments in renewable energy projects or facilities, clean energy technologies, as well as for general and working purposes..
The offering is expected to close on or about June 23, 2021.
Algonquin Power & Utilities Corp.on the TSX at CAD$18.60.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.