Capital Power considers first ever Green hybrid subordinated debt securities offering in Canada

EDMONTON, Alberta, Aug. 18, 2022 (GLOBE NEWSWIRE) -- Capital Power Corporation (“Capital Power” or the “Company”) (TSX:CPX) announced today that it is considering an offering of the first ever Green hybrid subordinated debt securities (the “Notes”) in Canada under its short form base shelf prospectus dated June 10, 2022.

If a successful offering is priced and completed, the Company intends to allocate an amount equal to the net proceeds from the sale of the Notes to finance or refinance new or existing “green” investments that meet the eligibility criteria as described in the Company’s Green Financing Framework. Pending such allocation, the Company expects to use the net proceeds from the sale of the Notes to redeem the Company’s outstanding Cumulative Minimum Rate Reset Preference Shares, Series 9 (TSX: CPX.PR.I) (the “Preferred Shares”), to repay certain amounts drawn on the Company’s credit facilities and for general corporate purposes. Although the Company intends to allocate an amount equal to the net proceeds of the offering of Notes to eligible investments, it will not be an event of default under the Company’s indenture governing the Notes if the Company fails to do so.

There is no certainty that Capital Power will ultimately complete the offering being considered or as to the timing or terms on which such an offering might be completed. This press release is not a notice of redemption of the Preferred Shares and there is no certainty the Company will redeem the Preferred Shares.

The Company has filed with the securities regulatory authorities in each of the provinces and territories of Canada a preliminary prospectus supplement to the Company’s short form base shelf prospectus dated June 10, 2022 in respect of the potential offering of Notes. Any potential offering, if and when launched, would be only made by way of prospectus and would be made pursuant to a final prospectus supplement to the short form base shelf prospectus of the Company dated June 10, 2022. The short form base shelf prospectus and preliminary prospectus supplement contain important detailed information about the Notes. Copies of these documents are available electronically on the System for Electronic Document Analysis and Retrieval of the Canadian Securities Administrators (“SEDAR”), at www.sedar.com. Investors should read the short form base shelf prospectus and preliminary prospectus supplement, or any final prospectus supplement, before making an investment decision.