PrefBlog

Northland Power Inc. has announced:

that it will issue in Canada a total of 4.8 million Cumulative Rate Reset Preferred Shares, Series 3 (the “Series 3 Preferred Shares”), at a price of $25.00 per share, for aggregate gross proceeds of $120 million, on a bought deal basis to a syndicate of underwriters led by CIBC, BMO Capital Markets and Scotiabank.

The holders of Series 3 Preferred Shares will be entitled to receive fixed cumulative dividends at an annual rate of $1.25 per share, payable quarterly, as and when declared by the Board of Directors of the Company. The Series 3 Preferred Shares will yield 5.00% annually at the issue price, for the initial five-year period ending December 31, 2017. The first dividend payment date is scheduled for June 29, 2012, based on an anticipated closing date of May 24, 2012. The dividend rate will reset on December 31, 2017 and every five years thereafter at a rate equal to the then five-year Government of Canada Bond yield plus 3.46%. The Series 3 Preferred Shares are redeemable on or after December 31, 2017.

The holders of Series 3 Preferred Shares will have the right to convert their shares into Cumulative Floating Rate Preferred Shares, Series 4 (the “Series 4 Preferred Shares”), subject to certain conditions, on December 31, 2017 and on December 31 of every fifth year thereafter. The holders of Series 4 Preferred Shares will be entitled to receive quarterly floating rate cumulative dividends, as and when declared by the Board of Directors, at a rate equal to the then three month Government of Canada Treasury Bill yield plus 3.46%.

The Company intends to use the net proceeds of the offering to fund the equity portion of its first six ground mounted solar projects, fund additional ground mounted solar project development, repay bank indebtedness, replenish working capital, and for general corporate purposes.

The Series 3 and Series 4 Preferred Shares will be offered to the public in Canada by way of a prospectus supplement that will be filed with securities regulatory authorities in each of the provinces of Canada, to the existing short form base shelf prospectus, dated March 23, 2012.

This entry was posted on Monday, May 14th, 2012 at 12:33 pm and is filed under New Issues. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.