Algonquin Power & Utilities Corp. (AQN) Announces Proposed $900M Equity Units Offering

June 16, 2021 4:02 PM EDT

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Algonquin Power & Utilities Corp. ("AQN" or the "Company") (TSX: AQN) (NYSE: AQN) today announced that it plans to conduct an underwritten marketed public offering of equity units (the "Equity Units") in an expected aggregate stated amount of $900 million (the "Offering"), subject to market conditions and other factors.

In connection with the Offering, the Company expects to grant the underwriters an option to purchase, upon the same terms as the Offering, up to an additional 15% of the Equity Units issued in the Offering, for a period of 13 days following pricing of the Offering.

The Company expects to use the net proceeds of the Offering to finance or refinance investments in renewable energy generation projects or facilities or other clean energy technologies in accordance with the Company's Green Financing Framework. This would be the fourth "green" offering by the Company or its subsidiaries and aligns with AQN's commitment to advancing a sustainable energy and water future.

Each Equity Unit will be issued in a stated amount of $50 and will initially consist of a contract to purchase common shares in the capital of the Company ("Common Shares") and a 1/20, or 5%, undivided beneficial ownership interest in $1,000 principal amount of the Company's remarketable senior notes expected to be due June 15, 2026. Pursuant to the purchase contracts, holders will be required to purchase Common Shares on June 15, 2024. The Company intends to list the Equity Units (that are in the form of "corporate units") on the New York Stock Exchange and expects trading to commence within 30 days of the date of initial issuance (subject to listing approval).

J.P. Morgan, Wells Fargo Securities, BMO Capital Markets and Morgan Stanley are acting as active book-running managers and representatives of the underwriters for the Offering.

The Offering is expected to be made to the public in each of the provinces of Canada and in the United States by means of a short form base shelf prospectus and related prospectus supplement to be filed with applicable Canadian securities regulatory authorities and which will form part of the Company's effective shelf registration statement filed with the Securities and Exchange Commission (the "SEC"). The short form base shelf prospectus and the related prospectus supplement will contain important information about the Equity Units. Investors should read the short form base shelf prospectus and the related prospectus supplement before making an investment decision.

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