Atlantic Power has announced:
Atlantic Power Corporation (TSX: ATP) (NYSE: AT) (“Atlantic Power” or the “Company”) and Capital Power Income L.P. (TSX: CPA.UN) (“CPILP” or the “Partnership”) jointly announced today the results of their respective special meetings held to approve certain matters related to the previously announced plan of arrangement involving the proposed direct and indirect acquisition of all of the limited partnership units of CPILP by Atlantic Power (the “Arrangement”). The unitholders of CPILP who voted today at CPILP’s special meeting overwhelmingly approved the Arrangement (approximately 98.5% in favour) and the shareholders of Atlantic Power who voted at Atlantic Power’s special meeting overwhelmingly approved the issuance of approximately 31.5 million shares of Atlantic Power as partial consideration for the purchase price under the Arrangement (approximately 96.75% in favour).
The application to the Court of Queen’s Bench of Alberta to obtain the final court order approving the Arrangement is scheduled for the afternoon of November 1, 2011, as described in the management proxy circular and joint proxy statement dated September 28, 2011 and available on www.sedar.com. Assuming court approval is obtained and all other closing conditions have been satisfied or waived, it is currently anticipated that the Arrangement will be completed on or about November 5, 2011.
They announced shortly afterwards:
Atlantic Power Corporation (TSX: ATP) (NYSE: AT) (“Atlantic Power” or the “Company”) and Capital Power Income L.P. (TSX: CPA.UN) (“CPILP”) jointly announced today that the Court of Queen’s Bench of Alberta has granted the final order to approve the previously announced plan of arrangement under the Canada Business Corporations Act (the “Arrangement”) involving the proposed direct and indirect acquisition of all of the limited partnership units of CPILP by Atlantic Power.
Completion of the Arrangement is conditional on the satisfaction or waiver of other closing conditions. It is currently anticipated that the Arrangement will be completed on or about November 5, 2011, provided that all other closing conditions have been satisfied or waived.
As previously discussed on PrefBlog, DBRS warned of a three-notch downgrade to Pfd-4 upon consummation of the deal. S&P has not been quite so explicit, but they rate Atlantic Power’s senior debt at BB- (their recent issue of 7-year paper yielded 9.5%), so a massive downgrade from the current preferred share rating of BB+ / P-3(high) may be similarly expected.
[…] Atlantic Power / CPI Preferred Equity with respect to the ratings on CZP.PR.A & CZP.PR.B. The takeover closed two weeks ago, after DBRS had warned of a massive downgrade … and nothing’s happening. Perhaps ATP is […]