Sprott Power Completes Public Offering To Partially Fund Shear Wind Acquisition

Posted by NAW Staff on August 30, 2012 No Comments
Categories : FYI

Sprott Power Corp., a Canada-based developer, owner and operator of renewable energy projects, says it has completed a public offering of a C$30 million aggregate principal amount of 6.75% extendible convertible unsecured subordinated debentures.

The net proceeds from the sale of the debentures will be used to partially finance Sprott Power's proposed acquisition of the issued and outstanding shares of Canadian wind energy developer Shear Wind.

The offering was underwritten by a syndicate of underwriters led by Canaccord Genuity Corp. and including TD Securities Inc., National Bank Financial Inc., NCP Northland Capital Partners Inc., Stifel Nicolaus Canada Inc. and Macquarie Capital Markets Canada Ltd. A total of 30,000 debentures were issued at a price of C$1,000 per debenture.

The company has granted the underwriters an over-allotment option, exercisable in whole or in part at any time up to 30 days following the closing of the offering, to purchase up to an additional C$4.5 million aggregate principal amount of debentures on the same terms. The over-allotment option will be used to cover over-allocations, if any, and for market-stabilization purposes.

Following the completion of the acquisition of Shear Wind, the debentures will be convertible at the option of the holder into common shares of Sprott Power at a conversion price of C$1.30 per share.

The debentures will have an initial maturity date of Oct. 15, 2012, extendable at Sprott Power's option to Dec. 31, 2012, which will automatically be extended to Dec. 31, 2017, upon completion of the acquisition.

If the acquisition does not close on or prior to 5:00 p.m. on the initial maturity date, the maturity date of the debentures will remain as the initial maturity date, and upon maturity, holders thereof will receive the full amount paid for their debentures, plus accrued and unpaid interest thereon.

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