DEDHAM, Mass., July 27, 2015 /PRNewswire/ -- Atlantic Power
Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the
"Company") today announced further progress in strengthening its
balance sheet and lowering its risk profile.
The Company today completed the redemption of its outstanding
$310.9 million principal amount of
9.0 percent Senior Unsecured Notes due November 2018. The
Notes were redeemed at a price equal to 104.50 percent of the
principal amount, plus accrued interest to the redemption date, for
a total amount of $330.4
million. The Company used the cash proceeds from the
recently completed sale of its wind generation portfolio to fund
the redemption. Expenses associated with the redemption
totaling approximately $19.5 million
will be recorded in the Company's financial results in the third
quarter of 2015.
Pro forma for the redemption of the Senior Unsecured Notes, the
Company's consolidated debt is now approximately $1.1 billion. This has been reduced
approximately $726 million on a net
basis since year end 2013, including $249
million of project debt that was assumed by the buyer of the
Company's wind generation portfolio. In addition, since year
end 2013, the Company has reduced its share of equity-owned project
debt by approximately $76 million,
most of which was associated with the sale of the wind generation
portfolio.
"The redemption of our most expensive debt is the latest step in
our commitment to strengthen our financial position by reducing
costs and reducing leverage. This action also improves our
medium-term maturity profile. Over the past six quarters, we
have reduced our total debt on a net basis by approximately
$800 million. We also continue
to amortize our term loan and project-level debt over time, and
expect that to further strengthen our balance sheet," said
James J. Moore, Jr., President and
Chief Executive Officer of Atlantic Power.
Following the redemption, the Company's remaining corporate debt
consists of $305 million (U.S. dollar
equivalent) of convertible debentures, which mature in 2017 and
2019. The Company continues to explore opportunities to
reshape these maturities with a goal of further improving its
credit profile.
Separately, Atlantic Power announced today that the Ontario
Superior Court of Justice issued a decision on July 24, 2015 denying the plaintiffs' motion for
leave and certification in the proposed securities class action
originally filed in March 2013
against Atlantic Power, a current officer, and a former officer and
director. The Superior Court concluded that there were no
misrepresentations or failures to disclose a material change by the
defendants, and that there is no reasonable possibility that the
plaintiffs would succeed at trial.
The Superior Court also determined that although the two
plaintiffs had sought to include convertible debenture holders in
the proposed class action, neither plaintiff was a debenture holder
and could not act as a representative plaintiff for
them. The Superior Court granted leave to reconstitute a
claim for debenture holders provided that the claim be amended and
that there be a debenture holder as plaintiff. In addition,
the Superior Court ruled that if debenture holders were to proceed
with an action, they would be required to reimburse the defendants
on a partial indemnity basis for their costs of responding to the
motion if the defendants were successful. The plaintiffs have
not advised whether they intend to appeal the decision.
In March of this year, the Company's motion to dismiss the U.S.
securities class action suit was granted by the U.S. District Court
for the District of Massachusetts. In April, the plaintiffs
filed a notice of appeal to the U.S. Court of Appeals for the First
Circuit. Briefs in the appeal are scheduled to be filed in
August and September.
Mr. Moore added, "We are very pleased with the decision of the
Ontario court denying the
plaintiffs' motion for leave and certification. This result
follows the dismissal of the U.S. action by the District Court
earlier this year. That ruling has been appealed. We
will continue to vigorously defend the Company's actions in the
appeals process."
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 2,137
megawatts ("MW") in which its aggregate ownership interest is
approximately 1,502 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
Amanda Wagemaker, 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:
- progress in strengthening the Company's balance sheet and
lowering its risk profile;
- the Company's commitment to strengthening its financial
position by reducing costs and reducing leverage;
- the redemption of the Notes improving the Company's medium-term
maturity profile;
- further strengthening of the Company's balance sheet through
the continued amortization of the term loan and project-level
debt;
- the Company's ability to continue to explore opportunities to
reshape corporate debt maturities and improve its credit profile;
and
- the nature of any further proceedings in the U.S. and Canadian
securities litigation.
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,
including, without limitation, the Company's ability to evaluate
and/or implement potential options, including asset sales or joint
ventures, if the valuation of a particular asset or assets is
compelling, to raise additional capital for growth and/or potential
debt reduction. 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. The financial outlook information contained in
this news release is presented to provide readers with guidance on
the cash distributions expected to be received by the Company and
to give readers a better understanding of the Company's ability to
pay its current level of distributions into the future. The
Company's ability to achieve its longer-term goals, including those
described in this news release, is based on significant assumptions
relating to and including, among other things, the general
conditions of the markets in which it operates, revenues, internal
and external growth opportunities, its ability to sell assets at
favorable prices or at all and general financial market and
interest rate conditions. The Company's actual results may
differ, possibly materially and adversely, from these
goals. Readers are cautioned that such information may not be
appropriate for other purposes.
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SOURCE Atlantic Power Corporation