Capital Power announces a C$350 million medium term note offering and the early redemption of C$251 million of medium term notes
NOT FOR DISTRIBUTION INTO THE UNITED STATES OR TO UNITED STATES WIRE SERVICES
Capital Power Corporation ("Capital Power") (TSX:CPX.TO) announced today that it has priced a public offering in Canada of unsecured medium term notes in the aggregate principal amount of C$350 million (the "Offering"). The notes have a coupon rate of 3.147% and mature on October 1, 2032.
The Offering is expected to close on or about October 1, 2020.
Capital Power also announced that it will redeem on October 9, 2020 all of its outstanding 5.276% medium term notes, due November 16, 2020, in the aggregate principal amount of C$251,181,000 (the "November 2020 Notes"). The redemption price will be C$1,025.61 per C$1,000 principal amount of the November 2020 Notes (representing in aggregate C$257,614,750.13) including applicable early redemption premiums, as well as accrued and unpaid interest to and including the day immediately preceding the redemption date of the November 2020 Notes.
Capital Power has delivered a notice in respect of the redemption pursuant to the indenture governing the November 2020 Notes.
The net proceeds of the Offering will be used to repay, redeem or refinance existing indebtedness, including indebtedness under outstanding debt securities or Capital Power's credit facilities, or for general corporate purposes.
The notes to be issued and sold under the Offering have been rated BBB- by S&P Global Ratings and BBB (low) by DBRS Limited.
The Offering is being offered in Canada through a syndicate of investment dealers co-led by RBC Dominion Securities Inc. and Scotia Capital Inc. under Capital Power's short form base shelf prospectus dated May 15, 2020, a prospectus supplement dated May 22, 2020 and a pricing supplement to be dated September 9, 2020. Copies of these documents may be obtained over the Internet under our profile at the Canadian Securities Administrators' website at www.sedar.com.
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, the anticipated use of the net proceeds of the Offering and the anticipated redemption of the November 2020 Notes. 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 Capital Power's securityholders and potential investors about management's assessment of Capital Power'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 21, 2020, and its interim Management's Discussion and Analysis dated July 30, 2020, 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.TO) 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 approximately 6,490 megawatts (MW) of power generation capacity at 28 facilities across North America. Approximately 190 MW of owned generation capacity is in advanced development in Alberta.
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