Algonquin Power and Utilities Corp. has announced:
the closing of the previously announced offering of Cumulative Rate Reset Preferred Shares, Series A (the “Series A Shares”). Algonquin issued a total of 4,800,000 Series A Shares at $25 per share for aggregate gross proceeds of $120 million. For the initial period ending December 31, 2018, holders of Series A Shares are entitled to receive a cumulative quarterly fixed dividend of $1.1250 per share per annum (4.5% on the subscription price of $25 per share), as and when declared by the board of directors of the Corporation.
The offering was made on a bought deal basis through a syndicate of underwriters led by Scotiabank and TD Securities Inc., and included BMO Capital Markets, CIBC World Markets Inc., Desjardins Securities Inc., National Bank Financial Inc., RBC Capital Markets, Canaccord Genuity Corp., Cormark Securities Inc. and Raymond James Ltd.
The Series A Shares will commence trading on the Toronto Stock Exchange today under the symbol AQN.PR.A.
The net proceeds of the offering will be used to fund a portion of Algonquin’s investment in two wind farms (Minonk and Senate) in the United States and for general corporate purposes.
AQN.PR.A is a FixedReset, 4.50%+294, announced October 25. The issue will be tracked by HIMIPref™, but relegated to the Scraps index on credit concerns.
The issue traded 302,554 shares today in a range of 24.98-10 before closing at 24.96-99, 3×7. Vital statistics are:
Maturity Type : Limit Maturity
Maturity Date : 2042-11-09
Maturity Price : 23.09
Evaluated at bid price : 24.96
Bid-YTW : 4.20 %