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Algonquin Power & Utilities Corp. Announces Pricing of $650 Million of Senior Unsecured Notes due 2031 and $500 Million of Senior Unsecured Notes due 2036
Algonquin Power & Utilities Corp. (TSX/NYSE: AQN) (“AQN”) today announced that ...
About this update from Algonquin Power & Utilities Corp.
[{"type":"text","content":"Algonquin Power & Utilities Corp. Announces Pricing of $650 Million of Senior Unsecured Notes due 2031 and $500 Million of Senior Unsecured Notes due 2036\n\n\n .bwalignc { text-align: center; list-style-position: inside }\n \n\n\n\n Algonquin Power & Utilities Corp. (TSX/NYSE: AQN) (“AQN”) today announced that Liberty Utilities Co. (“Liberty Utilities”), AQN’s U.S. regulated distribution utility holding company, priced an offering of $650\n \n\n million aggregate principal amount of 5.100% senior notes due\n \n\n May 15, 2031 (the “2031 Notes”) and $500 million aggregate principal amount of 5.650% senior notes due May 15, 2036 (the “2036 Notes” and, together with the 2031 Notes, the “Notes”).\n \n\n Liberty Utilities intends to use the net proceeds from the sale of the Notes to (i) repay its intercompany loan from AQN, which is expected to have a balance of approximately $690 million (including accrued interest) on the expected repayment date of June 15, 2026, and (ii) make a loan to Liberty Utilities (America) Co. (“LUA”), with LUA using such funds to repay existing amounts owing to AQN. AQN intends to use the funds, together with cash on hand, to refinance all $1.15 billion of the aggregate principal amount of AQN’s outstanding 5.365% notes due 2026 and to pay related fees and expenses. Liberty Utilities may invest funds which it does not immediately require in short-term investment instruments.\n \n\n The Notes are unsecured and unsubordinated obligations of Liberty Utilities and will rank equally with all of Liberty Utilities’ existing and future unsecured and unsubordinated indebtedness and senior in right of payment to any existing and future Liberty Utilities subordinated indebtedness. AQN is not a guarantor or obligor of the Notes. The 2031 Notes were priced at an issue price of 99.991% of their face value and will mature on May 15, 2031. The 2036 Notes were priced at an issue price of 99.676% of their face value and will mature on May 15, 2036. The offering is expected to close on May 15, 2026, subject to the satisfaction of customary closing conditions. Following the closing of the offering, Liberty Utilities will terminate all commitments under its $1.15 billion senior unsecured syndicated delayed draw term fa...