DEDHAM, Mass., May 11, 2021 /CNW/ -- Atlantic Power Corporation
(NYSE: AT) (TSX: ATP) ("Atlantic Power" or the "Company") announced
today that its indirect, wholly-owned subsidiary, Atlantic Power
Limited Partnership ("APLP") has exercised its right to mandatorily
redeem its C$210,000,000 principal
amount of 5.95% medium term notes due June
23, 2036 (the "Notes"), conditional on closing of the
previously announced proposed transaction among Atlantic Power,
Atlantic Power Preferred Equity Ltd., APLP and certain affiliates
(collectively the "Purchasers") of infrastructure funds managed by
I Squared Capital Advisors (US) LLC (the "Transaction"). The
parties are currently targeting May 14,
2021 as the closing date for the Transaction.
The redemption will be effected in accordance with the terms of
the trust indenture dated as of June 15,
2006 (the "Base Indenture") between APLP and BNY Trust
Company of Canada, as trustee (the
"Trustee"), as amended by a supplemental indenture entered into
between APLP and the Trustee on May 10,
2021 (the "Supplemental Indenture"). The Supplemental
Indenture gives effect to certain amendments to the Base Indenture
that, among other things, provide for the mandatory redemption of
the Notes conditional on closing of the Transaction (the
"Amendments"). The Amendments were previously approved by holders
of approximately 89.9% of the principal amount of Notes outstanding
as part of a consent solicitation process commenced in February 2021 (the "Consent Solicitation").
The redemption price for the Notes is equal to 106.071% of the
principal amount of the Notes outstanding and will include accrued
and unpaid interest on the Notes up to, but excluding, the closing
date of the Transaction.
As previously disclosed, holders of Notes that delivered valid
consents to the Amendments in connection with the Consent
Solicitation prior to 5:00 p.m.
(Toronto time) on March 16, 2021 will also be entitled to receive,
conditional upon closing of the Transaction, a consent fee equal to
0.25% of the aggregate principal amount of Notes in respect of
which a consent was delivered prior to such time.
The Transaction remains subject to the satisfaction or waiver of
certain conditions, including certain remaining third-party
consents and other customary closing conditions.
Atlantic Power and APLP retained RBC Dominion Securities Inc. as
solicitation agent in connection with the Consent Solicitation.
Questions concerning the redemption of the Notes should be directed
to RBC Dominion Securities Inc. by telephone at 416-842-6311 or
1-877-381-2099 (toll-free) or by email at
liability.management@rbccm.com.
About Atlantic Power
Atlantic Power is an independent power producer that owns power
generation assets in eleven states in the
United States and two provinces in Canada. The Company's generation projects sell
electricity and steam to investment-grade utilities and other
creditworthy large customers predominantly under long–term PPAs
that have expiration dates ranging from 2021 to 2043. The Company
seeks to minimize its exposure to commodity prices through
provisions in the contracts, fuel supply agreements and hedging
arrangements. The projects are diversified by geography, fuel type,
technology, dispatch profile and offtaker (customer). Approximately
75% of the projects in operation are 100% owned and directly
operated and maintained by the Company. The Company has expertise
in operating most fuel types, including gas, hydro, and biomass,
and it owns a 40% interest in one coal project.
APLP is an indirect, wholly-owned subsidiary of Atlantic Power
and is the issuer of the Notes.
Atlantic Power's common shares currently trade on the NYSE under
the symbol AT and on the TSX under the symbol ATP. For more
information, please visit the Company's website at
www.atlanticpower.com or contact:
Atlantic Power Corporation
Investor Relations
(617) 977-2700
info@atlanticpower.com
Copies of the Company's financial data and other publicly filed
documents are available on SEDAR at www.sedar.com or on EDGAR at
www.sec.gov/edgar.shtml under "Atlantic Power Corporation" or on
the Company's website.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this news release may constitute
forward-looking information or forward-looking statements within
the meaning of applicable securities laws (collectively,
"forward-looking statements"), which reflect the expectations of
management regarding the future growth, results of operations,
performance and business prospects and opportunities of the Company
and its projects. These statements, which are based on certain
assumptions and describe the Company's future plans, strategies and
expectations, can generally be identified by the use of the words
"plans", "expects", "does not expect", "is expected", "budget",
"estimates", "forecasts", "targets", "intends", "anticipates" or
"does not anticipate", "believes", "outlook", "objective", or
"continue", or equivalents or variations, including negative
variations, of such words and phrases, or state that certain
actions, events or results, "may", "could", "would", "should",
"might" or "will" be taken, occur or be achieved. Examples of such
statements in this news release include, but are not limited to,
statements with respect to whether the Transaction will close, the
anticipated timing of any such closing of the Transaction, the
redemption of the Notes and the payment of consent fees.
Forward-looking statements involve significant risks and
uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate
indications of whether or not or the times at or by which such
performance or results will be achieved. Please refer to the
factors discussed under "Risk Factors" and "Forward-Looking
Information" in the Company's periodic reports as filed with the
U.S. Securities and Exchange Commission (the "SEC") from time to
time for a detailed discussion of the risks and uncertainties
affecting the Company. Although the forward-looking statements
contained in this news release are based upon what are believed to
be reasonable assumptions, investors cannot be assured that actual
results will be consistent with these forward-looking statements,
and the differences may be material. These forward-looking
statements are made as of the date of this news release and, except
as expressly required by applicable law, the Company assumes no
obligation to update or revise them to reflect new events or
circumstances.
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SOURCE Atlantic Power Corporation