EDMONTON, Alberta – Capital Power Corporation (TSX: CPX) (“Capital Power”) and EPCOR Utilities Inc. (“EPCOR”) announced today the closing of the previously announced offering of 9,600,000 common shares of Capital Power at a price of $21.00 per common share for aggregate gross proceeds to EPCOR of $201,600,000. The underwriting syndicate for the offering was co-led by RBC Capital Markets, CIBC and Scotiabank as bookrunners. The underwriters maintain an over-allotment option to purchase up to an additional 1,440,000 common shares at $21.00 per common share, exercisable in whole or in part at any time up to 30 days after today’s closing.
Following today’s closing, EPCOR indirectly owns approximately 19% of the common shares of Capital Power. EPCOR plans to eventually sell all or a substantial portion of its remaining interest in Capital Power subject to market conditions, its requirements for capital and other circumstances that may arise in the future.
Because EPCOR’s ownership interest is below 20% following today’s closing, EPCOR now has the right to nominate and elect only two representatives to Capital Power’s Board of Directors. Accordingly, Messrs. Robert Phillips and Donald Lowry voluntarily tendered their resignations. The Board then resolved to reappoint Mr. Lowry to continue serving as a director and as the Chair of Capital Power’s Board until the Corporation’s next annual meeting of shareholders in April, 2014. Mr. Lowry will continue to recuse himself from any board decisions regarding business between Capital Power and EPCOR until the Board is satisfied that there has been an appropriate cooling off period.
“On behalf of the Board of Directors and the Company, I would like to thank Bob Phillips for his contributions as Board member over the past 4 years”, said Brian Vaasjo, President and CEO of Capital Power. “He played a large part in Capital Power’s transition to a publicly traded company and its current strategy and direction.”
Additional information on EPCOR’s special voting shares, governance at Capital Power, and Board of Director profiles are disclosed in Capital Power’s 2013 Management Proxy Circular that is available on the company’s website and also filed on SEDAR (www.sedar.com).
Certain information in this news release relating to EPCOR is forward-looking within the meaning of Canadian securities laws as it relates to anticipated financial performance, events or strategies. When used in this context, words such as “will”, “anticipate”, “believe”, “plan”, “intend”, “target” and “expect” or similar words suggest future outcomes. The purpose of forward-looking information is to provide investors with management’s assessment of future plans and possible outcomes and may not be appropriate for other purposes.
Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements. Except as required by law, EPCOR disclaims any intention and assumes no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
About Capital Power
Capital Power (TSX: CPX) is a growth-oriented North American power producer headquartered in Edmonton, Alberta. The company develops, acquires, operates and optimizes power generation from a variety of energy sources. Capital Power owns more than 3,600 megawatts of power generation capacity at 16 facilities across North America. An additional 595 megawatts of owned generation capacity is under construction or in advanced development in Alberta and Ontario. Capital Power’s website is: www.capitalpower.com.
About EPCOR Utilities Inc.
EPCOR’s wholly-owned subsidiaries build, own and operate electrical transmission and distribution networks, water and wastewater treatment facilities and infrastructure in Canada and the United States. The company’s subsidiaries also provide electricity and water services and products to residential and commercial customers. EPCOR, headquartered in Edmonton, Alberta, is an Alberta Top 60 employer. EPCOR’s website is www.epcor.com.