Algonquin Power & Utilities Corp. Announces C$900 Million Offering of Common Shares Comprised of C$550 Million Bought Deal Offering and Concurrent C$350 Million Offering to an Institutional Investor

This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated May 15, 2020 to its short form base shelf prospectus dated April 3, 2020.

OAKVILLE, Ontario, July 08, 2020 (GLOBE NEWSWIRE) -- Algonquin Power & Utilities Corp. (TSX: AQN, NYSE: AQN) (“APUC”, “Algonquin” or the “Company”) today announced that it has entered into an agreement with Scotiabank and CIBC Capital Markets, on behalf of a syndicate of underwriters (the "Underwriters"), under which the Underwriters have agreed to buy, on a bought deal basis, 32,170,000 common shares of APUC (the "Common Shares") at a price of C$17.10 per Common Share for gross proceeds of C$550 million (the "Bought Deal"). 

APUC has granted the Underwriters an over-allotment option, exercisable at the offering price for a period of 30 days following the closing of the Bought Deal, to purchase up to an additional 4,825,500 Common Shares. If the over-allotment option is exercised in full, the gross proceeds of the Bought Deal will be C$633 million.

APUC also announced today that it has entered into an agreement with an institutional investor that has agreed to purchase 20,470,000 Common Shares (the “Concurrent Offering” and together with the “Bought Deal”, the “Offerings”) at a price of C$17.10 per Common Share for gross proceeds of C$350 million.

The Common Shares offered in the Concurrent Offering are being sold directly to the institutional investor without an underwriter or placement agent.

Net proceeds of the Offerings are expected to be used to partially finance APUC’s previously announced renewable development growth projects and for general corporate purposes.  

“Algonquin is successfully executing on its U.S. $9.2 billion, five year capital program announced at our 2019 Investor Day, of which over half is expected to be incurred in 2020 and 2021,” stated Arun Banskota, President of APUC. “This offering satisfies the common equity requirements for the current 2020 capital expenditure program and also puts the Company in a position of strength as it looks to soon begin executing on the 2021 portion of its capital program.”

The Bought Deal will be made in all provinces of Canada and in the United States and is expected to close on or about July 17, 2020. The closing of the Concurrent Offering is expected to close on or about the same time as the Bought Deal.

The Company also plans to suspend its at-the-market equity program (“ATM Program”) for the balance of 2020 as Algonquin will have raised the common equity required for the current 2020 capital expenditure program.