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 4.27% for its Cumulative Floating Rate Preferred Shares, Series 3 (AZP.PR.C) for the quarter ending June 30, 2021. This rate was determined based on the Canadian Government 90-day Treasury Bill yield plus an additional 4.18%. The dividend will only be payable if declared by the board of directors. The corporation designates this dividend as an 'eligible dividend' for Canadian tax purposes, which may qualify for reduced rates for U.S. taxpayers as well. Investors should consult tax professionals for advice.

Positive

• Dividend rate set at 4.27% for Series 3 Shares beneficial for shareholders.
• Eligible for reduced tax rate on dividends for U.S. investors.

Negative

• None.

DEDHAM, Mass., March 1, 2021 /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") for the quarter ending June 30, 2021 will be 4.27%.

The Series 3 Shares dividend rate was calculated on February 26, 2021 to be 4.27%, representing the sum of the Canadian Government 90-day Treasury Bill yield (using the three-month average result of 0.09%) plus 4.18%.  The dividend for the quarter ending June 30, 2021 will only be payable if, as and when declared by the board of directors of the Corporation.

Tax Information for Shareholders

The Corporation designates the dividend on the 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 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. 

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 Atlantic Power'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 Atlantic Power's website.

 

View original content:http://www.prnewswire.com/news-releases/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-301237834.html

SOURCE Atlantic Power Corporation

FAQ

What is the dividend rate for Atlantic Power's Series 3 Shares for the June 2021 quarter?

The dividend rate for Atlantic Power's Series 3 Shares for the June 2021 quarter is 4.27%.

When will the dividend for Atlantic Power's Series 3 Shares be payable?

The dividend for Atlantic Power's Series 3 Shares will be payable only if declared by the board of directors.

Is the dividend from Atlantic Power's Series 3 Shares an eligible dividend?

Yes, the dividend is designated as an 'eligible dividend' for Canadian tax purposes.

What should U.S. taxpayers know about the dividend from Atlantic Power?

U.S. individual taxpayers may qualify for a reduced tax rate on dividends, subject to meeting certain criteria.