DEDHAM, Mass., Dec. 5, 2019 /PRNewswire/ -- Previously, on
December 2, 2019, Atlantic Power
Corporation ("Atlantic Power" or the "Company") and
Atlantic Power Preferred Equity Ltd. ("Preferred Equity")
announced the dividend rate reset for Preferred Equity's
outstanding Cumulative Rate Reset Preferred Shares, Series 2 (the
"Series 2 Shares") and the dividend rate on Preferred
Equity's outstanding Cumulative Floating Rate Preferred Shares,
Series 3 (the "Series 3 Shares"), effective on December 31, 2019.
The rate reset for the Series 2 Shares, announced on
December 2, 2019, using a fixed
dividend rate (the "Fixed Dividend Rate"), was calculated on
November 29, 2019 to be 5.67%,
representing the sum of the Canadian Government five-year bond
yield of 1.49% plus 4.18%.
This Fixed Dividend Rate announced on December 2, 2019 has been revised based on a
calculation as of December 2, 2019 to
be 5.739%, representing the sum of the Canadian Government
five-year bond yield of 1.559% plus 4.18%.
Such Fixed Dividend Rate will commence with the March 31, 2020 dividend payment to the holders of
the Series 2 Shares and continue through the December 31, 2024 dividend payment to the holders
of the Series 2 Shares, at which time such Fixed Dividend Rate will
again be reset.
The dividend rate for the Series 3 Shares, announced on
December 2, 2019, using a floating
dividend rate (the "Floating Dividend Rate"), was calculated
on November 29, 2019 to be 5.83%,
representing the sum of the Canadian Government 90-day Treasury
Bill yield (using the three-month average result of 1.65%) plus
4.18%. This Floating Dividend Rate announced on December 2, 2019 remains unchanged. Such Floating
Dividend Rate will be effective with the March 31, 2020 dividend payment to the holders of
the Series 3 Shares. The Floating Dividend Rate for Series 3 Shares
will be reset each quarter.
On December 31, 2019 and again on
December 31 of every fifth year
thereafter, the holders of Series 2 Shares have the right to
convert their Series 2 Shares, on a one-for-one basis, into Series
3 Shares and the holders of Series 3 Shares have the right to
convert their Series 3 Shares, on a one-for-one basis, into Series
2 Shares.
Holders of Series 2 Shares or Series 3 Shares who wish to
convert such securities into Series 3 Shares or Series 2 Shares,
respectively, should contact the financial institution, broker or
other intermediary through which they hold the Series 2 Shares or
Series 3 Shares to exercise this conversion privilege. Notice of
the exercise of the conversion privilege (an "Election
Notice") must be received by Preferred Equity not earlier than
December 1, 2019 and not later than
5:00 p.m. (Toronto time) on December 16, 2019.
Automatic Conversion and Restrictions on Conversion
Series 2 Shares
If, after giving effect to all Election Notices, there would
remain outstanding less than 1 million Series 2 Shares, then all
remaining outstanding Series 2 Shares will automatically convert
into Series 3 Shares, on a one-for-one basis on December 31, 2019. Holders of the Series 2 Shares
will not be permitted to convert their Series 2 Shares into Series
3 Shares if, after giving effect to all Election Notices, there
would be outstanding less than 1 million Series 3 Shares.
Series 3 Shares
If, after giving effect to all Election Notices, there would
remain outstanding less than 1 million Series 3 Shares, then all
remaining outstanding Series 3 Shares will automatically convert
into Series 2 Shares, on a one-for-one basis on December 31, 2019. Holders of the Series 3 Shares
will not be permitted to convert their Series 3 Shares into Series
2 Shares if, after giving effect to all Election Notices, there
would be outstanding less than 1 million Series 2 Shares.
About Atlantic Power Preferred Equity Ltd.
Preferred Equity is incorporated under the laws of the Province
of Alberta and is an indirect,
wholly-owned subsidiary of Atlantic Power. Preferred Equity holds,
directly or indirectly, Atlantic Power's business and power
generation and other assets in British
Columbia and the United
States.
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 generation projects sell
electricity and steam to investment-grade utilities and other
creditworthy large customers predominantly under long‑term Power
Purchase Agreements that have expiration dates ranging from 2020 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). The majority 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.
Atlantic Power's shares trade on the New York Stock Exchange
under the symbol AT and on the Toronto Stock Exchange 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.
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SOURCE Atlantic Power Corporation