AQN.PR.D : No Conversion To FloatingReset

Algonquin Power & Utilities Corp. has announced:

that none of its outstanding 4,000,000 Cumulative Rate Reset Preferred Shares, Series D (the “Series D Preferred Shares”) will be converted on April 1, 2019, into Cumulative Floating Rate Preferred Shares, Series E (the “Series E Preferred Shares”) of the Company. During the conversion notice period which ran from March 1, 2019 to March 15, 2019, less than 1,000,000 Series D Preferred Shares were tendered for conversion into Series E Preferred Shares.

As per the terms and conditions of the Series D Preferred Shares described in the prospectus supplement of the Company dated February 25, 2014 to a short form base shelf prospectus of the Company dated February 18, 2014 relating to the issuance of Series D Preferred Shares, since there would remain outstanding on April 1, 2019, after having taken into account all Series D Preferred Shares tendered for conversion into Series E Preferred Shares, less than 1,000,000 Series E Preferred Shares, holders of Series D Preferred Shares who tendered their Series D Preferred Shares for conversion will not be entitled to convert their Series D Preferred Shares into Series E Preferred Shares. As a result, Series E Preferred Shares will not be issued at this time.

It will be recalled that AQN.PR.D will reset at 5.091% effective March 31, 2019.

AQN.PR.D is a FixedReset, 5.00%+328, that commenced trading 2014-3-5 after being announced 2014-2-24. The extension was announced 2019-2-26 and the reset to 5.091% effective March 31, 2019 was announced 2019-3-1. I recommended against conversion. The issue is tracked by HIMIPref™ but relegated to the Scraps-FixedReset (Discount) subindex on credit concerns.

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