TORONTO, Dec 2 (Reuters) - EPCOR, the power utility owned by the city of Edmonton, Alberta, plans to sell about C$200 million ($200 million) worth of stock in Capital Power Corp, a company it created through the spinoff of its generating assets in May last year.
Capital Power Corp and EPCOR said the offering would see 8,334,000 common shares of Capital Power sold at C$24.00 each. The offering was to be handled by a syndicate of underwriters led by RBC Capital Markets and TD Securities Inc.
After the offering, EPCOR will indirectly own 61.6 percent of the common shares of Capital Power.
Underwriters have an option to purchase up to an additional 1,250,000 common shares at the price for further proceeds of about C$30 million.
'The proceeds from the current offering will be used by EPCOR to permanently finance previously announced investments, support ongoing capital expenditure programs, pay down short term debt and for general corporate purposes,' EPCOR said.
The utility said it planned to sell all or a portion of its remaining interest in Capital Power as demands for capital require and as market conditions permit.
EPCOR spun off its C$5 billion of power generation assets last year in an initial public offering to help fund expansion of its transmission, distribution and water operations.
($1=$1.00 Canadian)
(Reporting by Pav Jordan; editing by Rob Wilson) Keywords: EPCOR/ (pav.jordan@thomsonreuters.com; +1 416 941 8163; Reuters Messaging: pawel.jordan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Capital Power Corp and EPCOR said the offering would see 8,334,000 common shares of Capital Power sold at C$24.00 each. The offering was to be handled by a syndicate of underwriters led by RBC Capital Markets and TD Securities Inc.
After the offering, EPCOR will indirectly own 61.6 percent of the common shares of Capital Power.
Underwriters have an option to purchase up to an additional 1,250,000 common shares at the price for further proceeds of about C$30 million.
'The proceeds from the current offering will be used by EPCOR to permanently finance previously announced investments, support ongoing capital expenditure programs, pay down short term debt and for general corporate purposes,' EPCOR said.
The utility said it planned to sell all or a portion of its remaining interest in Capital Power as demands for capital require and as market conditions permit.
EPCOR spun off its C$5 billion of power generation assets last year in an initial public offering to help fund expansion of its transmission, distribution and water operations.
($1=$1.00 Canadian)
(Reporting by Pav Jordan; editing by Rob Wilson) Keywords: EPCOR/ (pav.jordan@thomsonreuters.com; +1 416 941 8163; Reuters Messaging: pawel.jordan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.