Capital Power Announces Upsizing of Previously Announced Bought Offering of Common Shares
BASE SHELF PROSPECTUS IS ACCESSIBLE, AND PROSPECTUS SUPPLEMENT WILL BE ACCESSIBLE WITHIN TWO BUSINESS DAYS, ON SEDAR+
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EDMONTON, Alberta, April 15, 2025 (GLOBE NEWSWIRE) -- Capital Power Corporation (TSX:CPX) ("Capital Power" or the "Company") announced today that it has increased the size of its previously announced bought deal offering. Pursuant to the amended terms, the syndicate of underwriters co-led by TD Securities and CIBC Capital Markets (collectively the "Underwriters") have agreed to purchase, on a bought deal basis, 10,350,000 common shares of Capital Power ("Common Shares") at an offering price of $43.45 per Common Share (the "Offering Price") for total gross proceeds to the Company of approximately $450 million (the "Public Offering").
The Underwriters have also been granted an option (the "Over-Allotment Option") to purchase up to an additional 1,552,500 Common Shares at the Offering Price. The Over-Allotment Option is exercisable, in whole or in part, at any time for a period of 30 days following the closing of the Public Offering. If the Over-Allotment Option is exercised in full, total gross proceeds to the Company from the Public Offering will be approximately $517 million.
The gross proceeds of the Public Offering, and the private placement previously announced on April 14, 2025 (the "Private Placement") will be used by Capital Power to fund a portion of the purchase price for the previously announced acquisition of Hummel Station, LLC and Rolling Hills Generating, L.L.C. (the "Acquisition"). The closings of the Public Offering and the Private Placement are not conditional upon the completion of the Acquisition. If the Acquisition is not completed, the Company intends to use the net proceeds from the Public Offering and the Private Placement to finance future growth opportunities including acquisitions, finance its capital development expenditures, reduce its outstanding indebtedness or for other general corporate purposes.
The Common Shares will be offered in all provinces and territories of Canada by way of a prospectus supplement (the "Prospectus Supplement") to Capital Power's base shelf prospectus dated June 12, 2024 (the "Base Shelf Prospectus"). The Prospectus Supplement will be filed with the securities commissions or securities regulatory authorities in all the provinces and territories of Canada on or before April 16, 2025. The Common Shares will also be offered on a private placement basis to "qualified institutional buyers" pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended (the "U.S. Securities Act").
Completion of the Public Offering and the Private Placement are subject to customary conditions, including requirements of the TSX. Closings of the Public Offering and the Private Placement are anticipated to occur on April 22, 2025.
All references to dollar amounts contained herein are to Canadian dollars.
The distribution of this announcement may ...
