Atlantic Power Corporation and Atlantic Power Preferred Equity Ltd. Announce Normal Course Issuer Bids for the Company's Convertible Unsecured Subordinated Debentures, Common Shares and Preferred Shares

Rhea-AI Summary

Atlantic Power Corporation and Atlantic Power Preferred Equity Ltd announced the renewal of their normal course issuer bids (NCIB) for buying back public securities. The NCIBs, effective December 31, 2020, will include purchases of common shares and various preferred shares. The firms believe current trading prices do not reflect the true value of these securities. Under the NCIBs, Atlantic Power can buy up to 10% of its public float for common shares and 5% for convertible debentures. The NCIBs will conclude by December 30, 2021.

Positive

• Renewal of NCIB is expected to enhance liquidity for public securities.
• Atlantic Power has a history of purchasing shares, with 7,476,213 shares bought at an average price of Cdn$2.85.

Negative

• No purchases of the 6.0% Series E Convertible Unsecured Subordinated Debentures under the previous NCIB.

DEDHAM, Mass., Dec. 18, 2020 /PRNewswire/ -- Atlantic Power Corporation (TSX: ATP) (NYSE: AT) (the "Company" or "Atlantic Power") and Atlantic Power Preferred Equity Ltd ("APPEL") announced today that the Toronto Stock Exchange ("TSX") has approved Atlantic Power's renewal of its normal course issuer bid ("NCIB") for the following series of the Company's convertible unsecured subordinated debentures and its common shares and APPEL's renewal of its NCIB for each of the following series of its preferred shares (collectively, the "Public Securities"):

a)     the 6.0% Series E Convertible Unsecured Subordinated Debentures due January 31, 2025 (the "6.0% Cdn$115.0 Million Debentures") (TSX: ATP.DB.E).

b)    the common shares (the "Common Shares") (TSX:ATP);

c)     the 4.85% Cumulative Redeemable Preferred Shares, Series 1 (the "Series 1 Preferred Shares") (TSX: AZP.PR.A);

d)    the Cumulative Rate Reset Preferred Shares, Series 2 (the "Series 2 Preferred Shares") (TSX: AZP.PR.B); and

e)     the Cumulative Floating Rate Preferred Shares, Series 3 (the "Series 3 Preferred Shares") (TSX: AZP.PR.C).

Atlantic Power and APPEL intend to commence their NCIBs on December 31, 2020.  The NCIBs will expire on December 30, 2021 or such earlier date as the Company and/or APPEL complete their respective purchases pursuant to the NCIBs or terminate them at their option.  Under its current NCIB which expires December 30, 2020, Atlantic Power has purchased 7,476,213 of its common shares at an average price of Cdn$2.85.  There were no purchases of its 6.0% Series E Convertible Unsecured Subordinated Debentures.  APPEL has purchased 381,794 of its Series 1 Preferred Shares at an average price of Cdn$15.17; 62,365 of its Series 2 Preferred Shares at an average price of Cdn$15.20; and 120,000 of its Series 3 Preferred Shares at an average price of Cdn$17.90.

Atlantic Power and APPEL believe that their Public Securities may trade in ranges that may not fully reflect their value.  As a result, Atlantic Power and APPEL believe that the purchase of their Public Securities from time to time can be undertaken at prices that make the acquisition of such securities an appropriate use of Atlantic Power's discretionary funds.  In addition, purchases under the NCIBs may increase the liquidity of the Public Securities.

Atlantic Power and APPEL will enter into a pre-defined automatic securities purchase plan ("ASPP") with their broker in order to facilitate repurchases of their Public Securities under their NCIBs.  Under the ASPP, commencing December 31, 2020, the broker for Atlantic Power and APPEL may repurchase their Public Securities under the NCIBs at any time, including without limitation when the Company and APPEL ordinarily would not be permitted to due to regulatory restrictions or self-imposed blackout periods.  Purchases will be made by the broker based upon the parameters prescribed by the TSX and the terms of the parties' written agreement.  The ASPP will be in place for the one-year period of the NCIBs.  RBC Capital Markets has been appointed as the broker of record for the Company's and APPEL's NCIBs.  All Public Securities purchased under the NCIBs will be cancelled.

As of December 17, 2020, Atlantic Power had outstanding:

a)    Cdn$115,000,000 principal amount of the 6.0% Cdn$115.0 Million Debentures; and

b)    89,222,568 outstanding Common Shares. 

As of December 17, 2020, APPEL had outstanding:

c)    3,465,706 outstanding Series 1 Preferred Shares;

d)    2,441,766 outstanding Series 2 Preferred Shares; and

e)    957,391 outstanding Series 3 Preferred Shares.

Under the NCIBs, the broker for Atlantic Power and APPEL may purchase up to 10% of the public float of Atlantic Power's common shares and 5% of the public float of its convertible debentures and up to 10% of the public float of APPEL's preferred shares, determined as of December 17, 2020, up to the following limits:

	Limit on Purchases (Principal Amount)
	Total Limit (1)	Daily Limit (2)
a)    6.0% Cdn$115.0 Million Debentures	Cdn$5,750,000	Cdn$7,706
	Limit on Purchases (Number of Shares)
	Total Limit (3)	Daily Limit (4)
b)    Common Shares	8,554,391	10,420
c)    Series 1 Preferred Shares	346,570	1,000
d)    Series 2 Preferred Shares	243,976	1,000
e)    Series 3 Preferred Shares	93,889	1,000

Notes
	1	Represents 5% of the public float.  As of December 17, 2020, the public float of the 6.0% Cdn$115.0 Million Debentures was $115,000,000.
	2	Represents 25% of the 6-month Average Daily Trading Value ("ADTVA") on the TSX.  The ADTVA for the 6.0% Cdn$115.0 Million Debentures is Cdn$30,826.
	3	For the Common Shares, represents 10% of the public float.  For the Series 1 Preferred Shares, Series 2 Preferred Shares and Series 3 Preferred Shares, represents 10% of the public float.  As of December 17, 2020, the public float of the Common Shares was 85,543,916; the public float of the Series 1 Preferred Shares was 3,465,706; the public float of the Series 2 Preferred Shares was 2,439,766; and the public float of the Series 3 Preferred Shares was 938,891.
	4	Represents the greater of 25% of the 6-month Average Daily Trading Volume ("ADTVO") on the TSX or 1,000 shares.  The ADTVO for the Common Shares is 41,683; the ADTVO for the Series 1 Preferred Shares is 1,221; the ADTVO for the Series 2 Preferred Shares is 993; and the ADTVO for the Series 3 Preferred Shares is 836.

All purchases made under the NCIBs will be made through the facilities of the TSX or other Canadian designated exchanges and published marketplaces and in accordance with the rules of the TSX at market prices prevailing at the time of purchase.  Common share purchases under the NCIB may also be made on the New York Stock Exchange ("NYSE") in compliance with rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended, or other designated exchanges and published marketplaces in the U.S. in accordance with applicable regulatory requirements.  The ability to make certain purchases through the facilities of the NYSE is subject to regulatory approval.  The actual amount of Public Securities that may be purchased under the NCIBs is subject to, and cannot exceed, the limits referred to above. 

About Atlantic Power

Atlantic Power is an independent power producer that owns power generation assets in eleven states in the United States and two provinces in Canada.  The generation projects sell electricity and steam to investment-grade utilities and other creditworthy large customers predominantly under long–term PPAs that have expiration dates ranging from 2021 to 2043.  The Company seeks to minimize its exposure to commodity prices through provisions in the contracts, fuel supply agreements and hedging arrangements.  The projects are diversified by geography, fuel type, technology, dispatch profile and offtaker (customer).  Approximately 75% of the projects in operation are 100% owned and directly operated and maintained by the company.  The Company has expertise in operating most fuel types, including gas, hydro, and biomass, and it owns a 40% interest in one coal project.  APPEL is an indirect wholly-owned subsidiary of Atlantic Power.

Atlantic Power's common shares trade 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 
Investor Relations
(617) 977-2700 
info@atlanticpower.com

Copies of the Company's financial data and other publicly filed documents are available 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.

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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 information or forward-looking statements within the meaning of applicable securities laws (collectively, "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 "plans", "expects", "does not expect", "is expected", "budget", "estimates", "forecasts", "targets", "intends", "anticipates" or "does not anticipate", "believes", "outlook", "objective", or "continue", or equivalents or variations, including negative variations, of such words and phrases, or state that certain actions, events or results, "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Examples of such statements in this press release include, but are not limited to, statements with respect to the following:

• the Company and APPEL believe that their Public Securities may trade in a range that may not fully reflect their value;
• the Company and APPEL each believe that the purchase of its Public Securities from time to time can be undertaken at prices that make the acquisition of such securities an appropriate use of Atlantic Power's discretionary funds;
• that purchases under the NCIBs may increase the liquidity of the Public Securities;
• the Company and APPEL will enter into one or more pre-defined automatic securities purchase plans with their broker from time to time during the course of the NCIBs to enable purchases of their Public Securities under the NCIBs to be made at times when Atlantic Power and APPEL ordinarily would not be permitted to, due to self-imposed internal blackout periods, insider trading rules, or otherwise, subject to certain parameters;
• the Company may purchase up to 10% of the public float of its common shares outstanding and 5% of the public float of its convertible debentures outstanding and APPEL may purchase up to 10% of the public float of its Public Securities;
• the Company and APPEL intend to commence the NCIBs on December 31, 2020; and
• the NCIBs will expire on December 30, 2021 or such earlier date as the Company and/or APPEL complete their respective purchases pursuant to the NCIBs.

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.  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.  

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SOURCE Atlantic Power Corporation

FAQ

What is the renewal of Atlantic Power's normal course issuer bid?

Atlantic Power's renewal of its NCIB allows for the repurchase of its common shares and other securities, effective December 31, 2020.

When does Atlantic Power's NCIB expire?

The NCIB will expire on December 30, 2021, or earlier if purchases are completed.

How many shares has Atlantic Power previously purchased under its NCIB?

Atlantic Power has purchased 7,476,213 common shares at an average price of Cdn$2.85 under its current NCIB.

What limitations exist for purchases under Atlantic Power's NCIB?

Under the NCIB, Atlantic Power can purchase up to 10% of its public float of common shares and 5% of its convertible debentures.

Why is Atlantic Power renewing its NCIB?

Atlantic Power believes that their public securities may trade below their true value, making repurchases an appropriate use of funds.