Capital Power Raises USD137 Million in Public Offering of Subscription Receipts

Published: Apr 12 2017
Deal Summary

Capital Power Corporation, a power generation company, has completed the public offering of 7,375,000 subscription receipts at a price of CAD24.75 (USD18.57) per subscription receipt, for gross proceeds of CAD182.5 million (USD137 million). The company has granted a 30 day option to the underwriters to purchase up to an additional 1,106,250 subscription receipts at the offering price to cover over-allotments, if any.

Each subscription receipt will entitle the holder thereof to receive, without payment of additional consideration or further action, upon closing of the acquisition of Decatur Power Holdings, one common share of Capital Power, while the subscription receipts remain outstanding, holders will be entitled to receive cash payments (Dividend Equivalent Payments) per subscription receipt equal to dividends declared by the company on each common share. Such dividend equivalent payments will have the same record date as the related common share dividend and will be paid to holders of subscription receipts concurrently with the payment date of each such dividend. Dividend Equivalent Payments will be paid first out of any interest on the Escrowed Funds and then out of the Escrowed Funds.

RBC Capital Markets and Scotiabank acted as underwriters to the company for the transaction.

Earlier, on April 12, 2017, the company agreed to acquire Decatur Power Holdings for USD441 million, subject to working capital and other closing adjustments. The transaction is expected to be completed in June 2017.

The company intends to use net proceeds from the offering to partially finance the acquisition of Decatur Power Holdings.

Deal History:

Announced/Pricing: On April 12, 2017, Capital Power priced the public offering of 7,375,000 subscription receipts at a price of CAD24.75 (USD18.57) per subscription receipt, for gross proceeds of approximately CAD182.5 million (USD137 million).

Filing: On May 3, 2016, Capital Power filed with the securities commissions or similar authorities in Canada for the public offering of equity securities.

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