Finance

Algonquin Power & Utilities Corp. Successfully Remarkets Senior Notes in Multi-Million Dollar Transaction

OAKVILLE, ON, March 26, 2024 - Algonquin Power & Utilities Corp., commonly referred to as AQN, a leading player on the Toronto Stock Exchange (TSX: AQN) and the New York Stock Exchange (NYSE: AQN), made a significant announcement today regarding its financial strategy. The company has effectively remarketed an impressive $1,150,000,000 in aggregate principal amount of 1.18% Senior Notes, with a maturity date slated for June 15, 2026. These financial instruments, also known as the "Notes," were originally issued back in June 2021 as a part of the company's corporate units, otherwise referred to as the "Corporate Units."

Following the conclusion of this remarketing endeavor, the interest rate on these Notes will be set at 5.365% annually, with the expectation to mature on the initial set date of June 15, 2026. This transaction is projected to be finalized by March 28, 2024, assuming all customary closing prerequisites are met satisfactorily.

This corporate strategy was executed on behalf of the Corporate Units' holders, though not for the company's direct financial gain. Instead, proceeds from this remarketing will be leveraged as an interim measure ahead of the fulfillment of the purchase contracts, integral components of the Corporate Units known as the "Purchase Contracts." As part of this interim step, AQN intends to invest the remarketed funds into a carefully curated portfolio of treasury securities, which would mature on or before June 17, 2024. It is anticipated that a significant portion of the revenue amassed upon the maturity of these securities will be directed towards settling the Purchase Contracts on June 17, 2024. Any surplus from this investment is destined to be allocated to the Corporate Units' holders. The subsequent financial maneuver will see the company channeling the proceeds from the Purchase Contracts' settlement into mitigating existing debts across the company and its subsidiaries, while also catering to assorted general corporate requirements.

The public offerings of this remarketing process encompass every province and territory across Canada, as well as the United States. The basis for these transactions will be a short form base shelf prospectus dated March 8, 2024, along with a closely associated prospectus supplement. These crucial documents will be duly filed with Canadian securities regulatory authorities and form an integral part of AQN's effective shelf registration statement already on file with the U.S. Securities and Exchange Commission (SEC). The prospectus and the supplemental documents are laden with important details about the Notes, and investors are encouraged to peruse these documents comprehensively prior to making investment decisions.

In line with the regulatory demands and ensuring transparent operations, this press release is not to be misconstrued as a solicitation or offering to buy or sell the aforementioned securities. Clearances for these transactions are pending, contingent on the satisfaction of regulatory requirements in the respective jurisdictions. It’s important to note that no sales of these securities will proceed in any state or jurisdiction where such operations would contravene legal statutes prior to the necessary registrations or qualifications under the securities legislation of such locales. A comprehensive prospectus supplement connected to the remarketing will be submitted to the SEC and relevant Canadian securities authorities. These documents will become publicly available on the SEC's website at http://www.sec.gov and on SEDAR+ at www.sedarplus.com. Potential investors can acquire copies of AQN’s short form base shelf prospectus and the prospectus supplement that pertains to the remarketing -- expected to be available shortly -- through CIBC World Markets Inc., RBC Dominion Securities Inc., Merrill Lynch Canada, Inc. in Canada, and from BofA Securities, Inc., CIBC World Markets Corp., and RBC Capital Markets, LLC in the United States.

A Profile of Algonquin Power & Utilities Corp.

AQN stands out as a diversified entity specializing in the fields of generation, transmission, and distribution utilities on an international scale, with its assets surpassing the $18 billion mark. The parent company of Liberty, AQN has dedicated itself to delivering energy and water solutions that are not just safe and reliable, but also economically feasible and sustainable. Its expansive portfolio encompasses investments in generation, transmission, and distribution utilities serving over one million customer connections predominantly in the United States and Canada. AQN's commitment to renewable energy is evidenced by its ownership, operation, or interest in over 4 gigawatts (GW) of renewable energy capacity.

The company’s financial instruments, including its common shares, preferred shares Series A, and preferred shares Series D, are traded on the Toronto Stock Exchange, identified by the symbols AQN, AQN.PR.A, and AQN.PR.D respectively. Parallelly, AQN's common shares, Series 2019-A subordinated notes and equity units are available on the New York Stock Exchange under the symbols AQN, AQNB, and AQNU.

To learn more about Algonquin Power & Utilities Corp. and its endeavors, the public and investors are invited to visit their website at www.algonquinpower.com. Additionally, for ongoing updates and insights into the company’s activities, following its Twitter handle @AQN_Utilities is suggested.

Forward-Looking Statements and Caution

The press release incorporates specific “forward-looking information” in accordance with applicable Canadian securities laws, in addition to "forward-looking statements" as defined by the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, identifiable by terms like “will” and “expects” and various grammatical variations of these terms, along with similar expressions, are not guarantees of future performance. They incorporate expectations about the anticipated closing of the remarketing exercise, the application of the proceeds from this endeavor, and the deployment of funds from the settlement of the Purchase Contracts. Nevertheless, the forward-looking statements are based upon factors or assumptions subjected to historical trends, current conditions, and anticipated future expansions. As these statements pertain to events that have yet to occur, they are inherently subject to risks and uncertainties.

Algonquin Power & Utilities Corp. wants to convey that even though the assumptions might appear reasonable under the current circumstances, risk factors and uncertainties sip in, potentially altering the actual results far from the initial expectations outlined in these statements. The forward-looking statements presented herein are intended to divulge information regarding management's current plans and expectations in relation to the future and should not be seen as all-encompassing. Significant risk factors and assumptions that could affect accuracy are discussed in AQN’s Annual Information Form and Management Discussion & Analysis for the year ended December 31, 2023. For those seeking detailed insights, these documents are available for review on SEDAR+ and EDGAR.

While these forward-looking statements have been presented upon thorough consideration of relevant information, AQN cautions against placing undue reliance on them. They are applicable only as of the date of publishing and, other than in circumstances where it is mandated by law, Algonquin Power & Utilities Corp. does not intend to update these statements for new events or circumstances.

The information presented about Algonquin Power & Utilities Corp.'s rebranding of the Senior Notes holds significant implications for investors and the market at large. This strategic financial move showcases the company's initiative in managing its portfolio and preparing for future developments with an astute financial mechanism at its core.

For further clarity and official details regarding the remarketing exercise of the Senior Notes, interested parties can refer to the SOURCE Algonquin Power & Utilities Corp., who reserves the right to interpret and render decisions regarding this financial transaction.

Algonquin Power & Utilities Corp.'s robust effort in remarketing its Senior Notes reflects a sophisticated understanding of the financial market and a dedicated approach to maintaining its corporate strength in an ever-evolving economic landscape.