An anonymous director reports
CAPITAL POWER ANNOUNCES UPSIZING OF PREVIOUSLY ANNOUNCED BOUGHT OFFERING OF COMMON SHARES
Capital Power Corp. 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 has agreed to purchase, on a bought deal basis, 10.35 million common shares of Capital Power at an offering price of $43.45 per common share for total gross proceeds to the company of approximately $450-million.
The underwriters have also been granted an option to purchase up to an additional 1,552,500 common shares at the offering price. The overallotment 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 overallotment 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, will be used by Capital Power to finance a portion of the purchase price for the previously announced acquisition of Hummel Station LLC and Rolling Hills Generating LLC. 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 to Capital Power's base shelf prospectus dated June 12, 2024. The prospectus supplement will be filed with the securities commissions or securities regulatory authorities in all 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 completion of the public offering and the private placement are subject to customary conditions, including requirements of the Toronto Stock Exchange. Closings of the public offering and the private placement are anticipated to occur on April 22, 2025.
About Capital Power Corp.
Capital Power is a growth-oriented power producer with approximately 10 gigawatts of power generation at 30 facilities across North America. The company prioritizes safely delivering reliable and affordable power communities can depend on, building clean power systems and creating balanced solutions for the energy future.
We seek Safe Harbor.
© 2025 Canjex Publishing Ltd. All rights reserved.