OAKVILLE, ON - Liberty Utilities, the U.S. regulated utility subsidiary of Algonquin Power & Utilities Corp. (TSX:NYSE:AQN) (NYSE:AQN), has priced a total of $850M in senior unsecured notes, the company announced on Monday. The offering includes $500M of 5.577% senior notes due January 31, 2029, and $350M of 5.869% senior notes due January 31, 2034.
The proceeds from the notes are intended for the repayment of existing debt and for general corporate purposes. These senior notes are unsecured and unsubordinated obligations of Liberty Utilities, ranking equally with all of Liberty Utilities' current and future unsecured and unsubordinated indebtedness. This ranking is senior to any existing and future subordinated debt of the company. Algonquin Power & Utilities Corp. is not a guarantor or obligor of these notes.
The 2029 Notes were issued at nearly their face value, specifically 99.996%, and will mature at the end of January 2029. The 2034 Notes, similarly priced at 99.995% of their face value, are set to mature at the end of January 2034. The offering is expected to close on January 12, 2024, contingent upon customary closing conditions.
These notes were offered in a private placement to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended, and to non-U.S. persons outside the United States under Regulation S of the same act. The notes have not been registered under the Securities Act or any state securities laws and, therefore, may not be offered or sold in the United States without registration or an exemption from such registration requirements.
Algonquin Power & Utilities Corp., the parent company of Liberty Utilities, is a diversified international utility with around $18B in total assets. The company provides energy and water solutions to over one million customer connections primarily in the United States and Canada and has interests in over 4 GW of installed renewable energy capacity.
This news is based on a press release statement.
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