Independent power company Pattern Energy Group Inc. has entered into an agreement to sell 10 million shares of its Class A common stock on a bought-deal basis at a price of $23.90 per share for aggregate gross proceeds of approximately $239 million.
The company intends to use the net proceeds from the offering for funding potential acquisition opportunities from Pattern Energy Group LP, repaying its revolving credit facility and supporting general corporate activities.
The offering will be made through a syndicate of underwriters, led by RBC Capital Markets, BMO Capital Markets and Morgan Stanley. Completion of the offering is subject to and conditional upon the receipt of all necessary approvals, including approval from the Toronto Stock Exchange and the NASDAQ Global Select Market.
The offering is expected to close on or about Aug. 12.
Pattern has also granted the underwriters an over-allotment option to purchase up to an additional 1.5 million shares of its Class A common stock to cover over-allotments, if any, on the same terms and conditions as the offering, including the offer price, exercisable at any time, in whole or in part, until 30 days after the date of the execution of the definitive agreement in respect of the offering. If the over-allotment option is exercised in full, the gross proceeds from the offering are expected to be approximately $274.9 million.