Northland Power Inc. announces $150 Million convertible debenture issue

Canada’s Northland Power Inc. announced last week a public offering, on a "bought deal" basis, of $150 million principal amount of convertible unsecured subordinated debentures.

The debentures will have a price of $1,000 per debenture, with an interest rate of 4.75% per annum, payable semi-annually on the last day of June and December commencing on June 30, 2015.

The debentures will mature on June 30, 2020.

The net proceeds of the offering will be used to fund a portion of Northland's investments in Nordsee One and the Grand Bend wind farm in Ontario, to replenish working capital and for general corporate purposes.

The offering is being made through a syndicate of underwriters led by BMO Capital Markets, CIBC and National Bank Financial.

The company has also granted the underwriters the option to purchase up to $7.5 million principal amount of additional debentures at a price of $1,000 per debenture to cover over-allotments, exercisable in whole or in part anytime up to 30 days following closing of the offering.

The debentures will be convertible at the holder's option into common shares of the company at a conversion price of $21.60 per common share. The debentures will not be redeemable prior to June 30, 2018. On and after June 30, 2018 and prior to June 30, 2019, the Debentures may be redeemed in whole or in part from time to time at the company's option, at a price equal to their principal amount plus accrued and unpaid interest.

We recently announced that Northland Power Inc. priced $232 million in project bonds issued by its wholly-owned subsidiary, Northland Power Solar Finance One L.P., backed by Northland’s six Ground-Mounted Solar Phase I projects located across Ontario, Canada.

Northland Power Inc. and RWE Innogy GmbH, Essen, signed an agreement in September 2014 for Northland to acquire an 85% equity stake in three offshore wind projects in Germany, consisting of Nordsee One, a 332 MW offshore wind farm.