DEDHAM, Mass., April 13, 2016 /CNW/ -- Atlantic Power
Corporation (TSX: ATP; NYSE: AT) (the "Company"), today announced
that APLP Holdings Limited Partnership ("APLP Holdings"), a
wholly-owned subsidiary of the Company, has entered into new senior
secured credit facilities, comprising $700 million in
aggregate principal amount of senior secured term loan facilities
(the "New Term Loan") and $200 million in aggregate
principal amount of senior secured revolving credit facilities (the
"New Revolver"). Collectively, the New Term Loan and the New
Revolver comprise the "New Credit Facilities". The Company
previously announced the launch of the syndication of the New
Credit Facilities in the Company's Current Report on Form 8-K filed
with the Securities and Exchange Commission on March 21, 2016,
and the press release referred to therein.
"We are pleased to have closed this financing transaction
despite a difficult market environment, particularly for companies
in the energy sector," said James J. Moore,
Jr., President and Chief Executive Officer of the
Company. "Following the planned redemption of our 2017
convertible debentures, we will have no corporate debt maturities
prior to 2019. Continued delevering of our balance sheet is
an important priority for us and will be achieved through
amortization and discretionary debt repurchases. Although our cash
flow allocation will be focused on additional debt reduction, we
now have adequate financial flexibility to invest in some
capital-light growth opportunities and to continue making
discretionary investments in our power plants."
Below is a summary of the terms of the financing.
Additional details are included in the Company's Current Report on
Form 8-K filed with the Securities and Exchange Commission on
April 13, 2016.
- The maturity dates of the New Revolver and the New Term Loan
are April 2021 and April 2023, respectively.
- Proceeds from the New Term Loan reflect an original issue
discount of 3%. The interest rate on the New Term Loan is the
Adjusted Eurodollar Rate (as defined in the credit agreement
governing the New Credit Facilities) plus a margin of 5.00%.
- The New Term Loan contains customary prepayment provisions,
including a mandatory 1% annual amortization and mandatory
prepayment via the greater of a 50% cash sweep or such other amount
that is required to achieve a specified targeted debt balance.
The Company and its subsidiaries expect to use the proceeds of
the New Term Loan to:
- fund the prepayment of the existing senior secured term loan at
the Company's Atlantic Power Limited Partnership subsidiary in the
amount of $447.9 million, plus
accrued interest;
- fund the optional prepayment or redemption, at a price equal to
par plus accrued interest, of the Company's outstanding
Cdn$67.2 million 6.25% Convertible
Unsecured Subordinated Debentures, Series A, maturing in
March 2017, and the Company's
outstanding Cdn$75.8 million 5.60%
Convertible Unsecured Subordinated Debentures, Series B, maturing
in June 2017 (total US$ equivalent
$110.1 million as of March 31, 2016);
- pay transaction costs and expenses; and
- make a distribution to the Company from remaining proceeds of
approximately $106 million, which the
Company may use for any corporate purpose, including, at the
discretion of the Company, repurchase of convertible debentures
maturing in 2019 and repurchase of preferred and common
equity.
About Atlantic Power
Atlantic Power owns and operates a diverse fleet of power
generation assets in the United
States and Canada. The Company's power generation
projects sell electricity to utilities and other large commercial
customers largely under long-term power purchase agreements, which
seek to minimize exposure to changes in commodity prices.
Atlantic Power's power generation projects in operation have an
aggregate gross electric generation capacity of approximately 2,138
MW, in which its aggregate ownership interest is approximately
1,500 MW. The Company's current portfolio consists of
interests in twenty-three operational power generation projects
across nine states in the United
States and two provinces in Canada.
Atlantic Power trades 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 certain financial data and other publicly filed
documents are filed 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.
Cautionary Note Regarding Forward-Looking Statements
To the extent any statements made in this news release contain
information that is not historical, these statements are
forward-looking statements within the meaning of Section 27A of the
U.S. Securities Act of 1933, as amended, and Section 21E of the
U.S. Securities Exchange Act of 1934, as amended, and under
Canadian securities law (collectively, "forward-looking
statements").
Certain statements in this news release may constitute
"forward-looking statements", which reflect the expectations of
management regarding the future growth, results of operations,
performance and business prospects and opportunities of the Company
and its projects. These statements, which are based on
certain assumptions and describe the Company's future plans,
strategies and expectations, can generally be identified by the use
of the words "may," "will," "project," "continue," "believe,"
"intend," "anticipate," "expect" or similar expressions that are
predictions of or indicate future events or trends and which do not
relate solely to present or historical matters. Examples of
such statements in this press release include, but are not limited
to, statements with respect to the following:
- the Company's general expectations regarding the use of
proceeds;
- the Company's expectations regarding corporate debt maturities
following entry into the New Credit Facilities;
- the Company's expectations regarding the impact of the New
Credit Facilities on debt reduction efforts; and
- the Company's expectations regarding cash flow allocation.
Forward-looking statements involve significant risks and
uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate
indications of whether or not or the times at or by which such
performance or results will be achieved. Please refer to the
factors discussed under "Risk Factors" and "Forward-Looking
Information" in the Company's periodic reports as filed with the
Securities and Exchange Commission from time to time for a detailed
discussion of the risks and uncertainties affecting the
Company. Although the forward-looking statements contained in
this news release are based upon what are believed to be reasonable
assumptions, investors cannot be assured that actual results will
be consistent with these forward-looking statements, and the
differences may be material. These forward-looking statements
are made as of the date of this news release and, except as
expressly required by applicable law, the Company assumes no
obligation to update or revise them to reflect new events or
circumstances.
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SOURCE Atlantic Power Corporation