Atlantic Power Closes $86.25M Convertible Debenture Offering

On December 17, 2009, Atlantic Power Corporation (Atlantic) closed an offering of 6.25 per cent convertible unsecured subordinated debentures due March 15, 2017, at a price of $1,000 per debenture for total gross proceeds of $75 million. The debentures were sold on a bought deal basis to a syndicate of underwriters led by BMO Nesbitt Burns Inc. and including CIBC World Markets Inc., RBC Dominion Securities Inc., National Bank Financial Inc., Scotia Capital Inc. and UBS Securities Canada Inc.

Atlantic also granted the syndicate of underwriters an over-allotment option, exercisable for a period of 30 days following the closing of the offering, to purchase up to an additional 15 per cent of the principal amount of debentures. The underwriters exercised the over-allotment option in full and purchased additional debentures on December 24, 2009, for gross proceeds of $11.25 million.

On December 18, 2009, approximately $42.9 million of the net proceeds of the offering were used to redeem the outstanding 11 per cent subordinated notes of Atlantic. The remainder of the net proceeds will be available to fund growth opportunities, which may include previously disclosed biomass development projects that are expected to begin construction in 2010, as well as potential asset or business acquisitions that are currently being evaluated by Atlantic, or for general corporate purposes.

Goodmans LLP represented Atlantic with a team that included Bill Gorman, Caroline Wang, Leah Ramkaran (corporate/securities); and Jon Northup and Mark Biderman (tax).

Blake, Cassels & Graydon LLP represented the syndicate of underwriters with a team that included Jeffrey Lloyd, Brendan Reay and Michael Hickey (corporate/securities); and Ron Richler and Edward Miller (tax).