Capital Power Corporation (TSX: CPX) has completed its previously announced public offering of 7,375,000 subscription receipts, on a bought deal basis, at an issue price of $24.75 per subscription receipt for gross proceeds of approximately $183 million.
The offering was conducted by a syndicate co-led by RBC Dominion Securities Inc. and Scotia Capital Inc., and included TD Securities Inc., CIBC World Markets Inc., National Bank Financial Inc., BMO Nesbitt Burns Inc., HSBC Securities (Canada) Inc., GMP Securities L.P., Industrial Alliance Securities Inc. and Raymond James Ltd.
Dentons Canada LLP and Osler, Hoskin & Harcourt LLP acted as legal counsels to Capital Power and the underwriters respectively.
The net proceeds will be used to partially finance the previously announced acquisition of Decatur Power Holdings, LLC, which owns the Decatur Energy Center from an affiliate of LS Power Equity Partners III for US $441 million, subject to working capital and other closing adjustments. The acquisition is expected to close in June 2017.
Each subscription receipt will entitle the holder thereof to receive, without payment of additional consideration or further action, upon closing of the acquisition, one common share of Capital Power. In addition, while the subscription receipts remain outstanding, holders will be entitled to receive cash payments per subscription receipt equal to dividends declared by Capital Power on each common share.
The subscription receipts will begin trading on the Toronto Stock Exchange under the symbol CPX.R.
photo credit: LS Power