EDMONTON, Alberta – Capital Power Corporation (“Capital Power”) (TSX:CPX) announced today that it has priced a public offering in Canada of unsecured medium term notes in the aggregate principal amount of C$275 million (the “Offering”). The notes have a coupon rate of 4.424% and mature on February 8, 2030.
The Offering is expected to close on or about November 8, 2019. The net proceeds of the Offering will be used to repay or refinance existing indebtedness, including indebtedness under Capital Power’s credit facilities, or for general corporate purposes.
The notes have been rated BBB- by S&P Global Ratings and BBB (low) by DBRS Limited.
The notes are being offered in Canada pursuant to a pricing supplement dated November 5, 2019 to Capital Power’s short form base shelf prospectus dated May 11, 2018 and prospectus supplement dated May 18, 2018. The pricing supplement will be filed with the securities regulatory authorities in the provinces and territories in Canada.
BMO Nesbitt Burns Inc. and CIBC World Markets Inc. acted as co-lead managers and joint book runners for the syndicate of agents which includes RBC Dominion Securities Inc., TD Securities Inc., Scotia Capital Inc., National Bank Financial Inc., MUFG Securities (Canada), Ltd., Merrill Lynch Canada Inc., and Casgrain & Company Limited.
This news release does not constitute an offer of securities for sale in the United States, nor may any securities referred to herein be offered or sold in the United States absent registration or an exemption from registration as provided in the U.S. Securities Act of 1933, as amended (the “Securities Act”), and the rules and regulations thereunder. The securities referred to herein have not been registered pursuant to the Securities Act and there is no intention to register any of the securities in the United States or to conduct a public offering of securities in the United States.
Certain information in this news release relating to Capital Power is forward-looking information and related to anticipated events and strategies. When used in this context, words such as “will”, “anticipate”, “believe”, “plan”, “intend”, “target” and “expect” or similar words suggest future outcomes. Specific forward-looking information in this press release includes expectations regarding the timing to the closing of the offering and the anticipated use of the net proceeds of the offering. By their nature, such statements are subject to significant risks and uncertainties, which include, but are not limited to, regulatory and government decisions, economic conditions, and availability and cost of financing. Forward-looking information or statements included in this news release are provided to inform the Company’s shareholders and potential investors about management’s assessment of the Company’s future plans and operations. This information may not be appropriate for other purposes.
All forward-looking information or statements reflect Capital Power’s assumptions and analyses made by Capital Power in light of its experience and perception of historical trends, current conditions and expected future developments, and other factors it believes are appropriate. Readers are cautioned not to place undue reliance on this forward-looking information. Capital Power undertakes no obligation to update or revise any forward-looking information except as required by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to Capital Power’s annual Management’s Discussion and Analysis dated February 15, 2019, and its interim Management’s Discussion and Analysis dated October 25, 2019, under Capital Power’s profile on SEDAR and other reports filed by Capital Power with Canadian securities regulators.
About Capital Power
Capital Power (TSX: CPX) is a growth-oriented North American power producer headquartered in Edmonton, Alberta. The company develops, acquires, owns, and operates power generation facilities using a variety of energy sources. Capital Power owns nearly 6,000 megawatts (MW) of power generation capacity at 25 facilities across North America. Approximately 900 MW of owned generation capacity is in advanced development in Alberta and Illinois.