Atlantic Power Corporation and Atlantic Power Preferred Equity Ltd. Announce Quarterly Dividend Rate on the Cumulative Floating Rate Preferred Shares, Series 3 of Atlantic Power Preferred Equity Ltd.

Rhea-AI Summary

Atlantic Power Corporation announced a dividend rate of 4.36% for its Cumulative Floating Rate Preferred Shares, Series 3 (AZP.PR.C), payable on December 31, 2020. This rate was calculated based on the Canadian Government's 90-day Treasury Bill yield of 0.18% plus an additional 4.18%. The dividend qualifies as an 'eligible dividend' under Canadian tax law, potentially benefitting U.S. taxpayers as well. The Corporation is a wholly-owned subsidiary of Atlantic Power, which operates power generation assets across North America.

Positive

• Quarterly dividend rate set at 4.36%, providing income for shareholders.
• Dividend categorized as 'eligible dividend' under Canadian tax law, enhancing investment appeal.

Negative

• None.

DEDHAM, Mass., Sept. 1, 2020 /PRNewswire/ -- Atlantic Power Corporation ("Atlantic Power") and Atlantic Power Preferred Equity Ltd. (TSX: AZP.PR.A, AZP.PR.B and AZP.PR.C) (the "Corporation"), a subsidiary of Atlantic Power, announced the dividend rate on the Corporation's outstanding Cumulative Floating Rate Preferred Shares, Series 3 (AZP.PR.C) (the "Series 3 Shares") will be 4.36%, which will be payable December 31, 2020.

The Series 3 Shares dividend rate was calculated on August 31, 2020 to be 4.36%, representing the sum of the Canadian Government 90-day Treasury Bill yield (using the three-month average result of 0.18%) plus 4.18%.

Tax Information for Shareholders

The Corporation designates the dividend on each of the Series 1 Shares, Series 2 Shares and Series 3 Shares to be an "eligible dividend" pursuant to subsection 89(14) of the Income Tax Act (Canada) and its equivalent in any of the provinces and territories of Canada.  U.S. individual or other non-corporate taxpayers should be eligible for the reduced rate of tax currently applicable to "qualified dividends" provided that the investor meets the holding period and any other requirements.  Taxpayers should always seek their own independent qualified professionals for advice regarding the tax consequences of purchasing or owning preferred shares of the Corporation. 

About Atlantic Power Preferred Equity Ltd.

The Corporation is incorporated under the laws of the Province of Alberta and is an indirect, wholly-owned subsidiary of Atlantic Power. The Corporation holds, directly or indirectly, Atlantic Power's business and power generation and other assets in British Columbia and the United States.

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 Company's 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 2020 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. 

Atlantic Power's 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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SOURCE Atlantic Power Corporation

FAQ

What is the dividend rate for Atlantic Power Preferred Equity Ltd. Series 3 Shares?

The dividend rate for the Series 3 Shares is 4.36%.

When will the dividend for Atlantic Power Preferred Equity Ltd. Series 3 Shares be paid?

The dividend will be payable on December 31, 2020.

How is the dividend rate for Atlantic Power Preferred Equity Ltd. Series 3 Shares calculated?

The dividend rate is calculated using the Canadian Government 90-day Treasury Bill yield plus an additional percentage.

Are dividends from Atlantic Power Preferred Equity Ltd. taxable?

Yes, dividends are designated as 'eligible dividends' under Canadian tax law.

What benefits do U.S. taxpayers receive from Atlantic Power Preferred Equity Ltd. dividends?

U.S. individual taxpayers may qualify for a reduced tax rate on these dividends.