OAKVILLE, ON, May 30, 2012 /CNW/ - Algonquin Power & Utilities Corp.
("APUC") (TSX: AQN) is pleased to announce that New Hampshire Public
Utilities Commission has approved the acquisition of New Hampshire
based electricity and natural gas distribution businesses by Liberty
Utilities, APUC's regulated distribution utility. The acquisition was
originally announced in December 2010 and today the final state
regulatory approvals were granted to complete the transaction.
The regulated electric distribution company provides electric service to
over 43,000 customers in 21 communities in New Hampshire and the
regulated natural gas distribution utility provides natural gas service
to over 87,000 customers in five counties and 30 communities in New
The closing of the acquisition is expected to occur on or about July 3,
2012. Total consideration for the transaction is US$285 million, which
represents a multiple of aggregate expected regulatory assets of
Recently, on May 14, 2012, Emera Inc. ("Emera") converted 12 million
subscription receipts that were issued to Emera in December 2010, and
APUC received $60 million in proceeds from the conversion for use to
partially fund the acquisition.
In addition, Liberty Utilities recently received commitments for a
US$225 million private placement debt financing. The notes are senior
unsecured with an average life maturity of over ten years and a
weighted average coupon of 4.38%. Liberty Utilities will use $135
million of the proceeds from the notes to partially fund the
acquisition of the New Hampshire utilities. The remaining proceeds will
be used for the previously announced acquisition of regulated natural
gas distribution utility assets located in Missouri, Iowa, and Illinois
expected to occur early in the third quarter of 2012. The closing of
the debt financing is expected to coincide with the respective closings
of the acquisitions.
"We are very pleased to have achieved this milestone in the growth of
our regulated utilities business, and look forward to the expansion of
our presence in the State of New Hampshire", commented Chief Executive
Officer Ian Robertson. "Our transition teams have been busy preparing
for the approval and transition of the businesses to operate as Liberty
Utilities. We have augmented the existing New Hampshire operations
group and are ready to provide the high quality, local and responsive
service to New Hampshire that Liberty Utilities' customers across the
U.S. have come to expect."
About Algonquin Power & Utilities Corp.
Through its distinct operating subsidiaries, APUC owns and operates a
diversified portfolio of $1.2 billion of clean renewable electric
generation and sustainable utility distribution businesses in North