CSE.PR.A Crashes on Desultory Volume

Capstone Infrastructure Corporation has announced:

that it has closed its previously announced offering of 3,000,000 Cumulative 5-Year Rate Reset Preferred Shares, Series A (the “Series A Shares”) at a price of $25.00 per Series A Share for aggregate gross proceeds of $75,000,000.

The Series A Shares were sold to a syndicate of underwriters co-led by TD Securities Inc., Macquarie Capital Markets Canada Ltd. and RBC Capital Markets on a bought deal basis. The underwriters are entitled, pursuant to an over-allotment option exercisable in whole or in part at any time up until 30 days after the closing date, to purchase an additional 450,000 Series A Shares at $25.00 per Series A Share.

The Series A Shares will be listed and posted for trading on the Toronto Stock Exchange under the symbol “CSE.PR.A”. The net proceeds of the offering will be used to fund the Corporation’s final equity payment for the construction of the Amherstburg solar power facility, to fund future potential acquisitions and for general corporate purposes.

The Corporation also announced today that the Amherstburg solar power facility has achieved commercial operation under its Renewable Energy Standard Offer Program contract with the Ontario Power Authority and is in the process of finalizing acceptance testing, which is expected to be completed in the first week of July.

CSE.PR.A is a 5.00%+271 FixedReset announced June 13. The issue traded 13,150 shares in a range of 24.00-75 before closing at 24.00-20, 5×10.

Vital statistics are:

Maturity Type : Limit Maturity
Maturity Date : 2041-06-30
Maturity Price : 22.77
Evaluated at bid price : 24.00
Bid-YTW : 4.88 %

CSE.PR.A is tracked by HIMIPref™, but is relegated to the Scraps index on credit concerns.

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