Atlantic Power Corp. has closed its public offering of 6 million common shares of the company, including 784,000 common shares issued pursuant to the exercise in full of the underwriters' overallotment option, at a price of $13.35 per common share.
The company received net proceeds from the common share offering, after deducting the underwriting discounts and expenses, of approximately $75.6 million. BMO Capital Markets and UBS Securities LLC served as joint book-running managers of the offering.
The company also announced the closing of its public offering in Canada of C$80.5 million aggregate principal amount of convertible unsecured subordinated debentures at a public offering price of C$1,000 per debenture. The debentures bear interest at a rate of 5.60% per year and will mature on June 30, 2017, unless earlier redeemed.
The debentures will be convertible into common shares of the company at an initial conversion rate of 55.2486 common shares per C$1,000 principal amount of debentures, representing an initial conversion price of approximately C$18.10 per common share.
Approximately $20 million will be used to repay indebtedness incurred under Atlantic Power's credit facility entered into in June to partially fund its previously announced acquisition of a 27.6% equity interest in Idaho Wind Partners I LLC. Up to $75 million will be used to fund an investment in the Piedmont Green Power biomass project in Barnesville, Ga., for substantially all of the equity interest in the project.
Any remaining net proceeds will be used to fund additional growth opportunities and for general corporate purposes, including a potential further acquisition that the company is currently considering.
SOURCE: Atlantic Power Corp.