Capital Power Unveils Medium Term Note Offering
Capital Power Corporation (TSX: CPX) has recently made headlines by announcing a substantial C$600 million public offering of unsecured medium term notes. This financial maneuver is strategically designed to bolster the company's future and support its ongoing development projects. The medium term notes, which carry an interest rate of 4.231%, are set to mature on January 14, 2033, providing Capital Power with a robust capital influx.
Details of the Offering
The anticipated closing date for the Offering is projected around mid-November 2025, an event that promises to provide the company with substantial liquidity. The net proceeds from these securities are earmarked for a variety of financial strategies, including repaying existing debts, financing the redemption of the January 2026 Notes, and supporting ongoing projects like the Goreway Power Station. This move not only signifies Capital Power's commitment to financial stability but also enhances its position in a competitive market.
Strong Ratings and Underwriting Process
The notes have received strong provisional ratings, reflecting the company's solid financial health. With ratings of BBB- from S&P Global Ratings and Fitch Ratings, and BBB (low) from DBRS Limited, investor confidence is likely to remain high. The offering will be facilitated by a syndicate of investment dealers, co-led by Scotia Capital Inc. and National Bank Financial Inc. These ratings will provide assurance to investors and stakeholders about the viability and sustainability of their investment.
Redemption of January 2026 Notes
In addition to the new offering, Capital Power also disclosed plans to redeem its outstanding 4.986% medium term notes, which are due January 23, 2026. This redemption is scheduled for November 23, 2025, and will involve a total of C$300 million worth of notes. The company plans to meet the redemption price, which comprises the face value plus accrued interest, thus ensuring a smooth exit for these financial instruments.
Commitment to Sustainable Power Generation
Capital Power continues to position itself as a leader in the energy sector with a strong commitment to sustainability. As a growth-oriented power producer, the company operates approximately 12 GW of owned generation at various facilities throughout North America. With initiatives focused on lower-carbon energy production and innovative solutions, Capital Power strives to deliver reliable electricity to communities while adhering to environmental stewardship.
Connecting with Capital Power
For more information or inquiries regarding the offering, stakeholders are encouraged to reach out through the company's dedicated investor relations channels. The investor relations team, led by Noreen Farrell, can be contacted at (403) 461-5236 or via email at investor@capitalpower.com. Media inquiries can be directed to Katherine Perron at (780) 392-5335 or kperron@capitalpower.com.
Frequently Asked Questions
What is the purpose of the C$600 million offering?
The offering aims to refinance existing debts, including the redemption of some medium term notes and funding ongoing power generation projects.
What ratings have the medium term notes received?
The notes have received provisional ratings of BBB- from S&P Global Ratings and Fitch Ratings, indicating a strong financial position.
When is the anticipated closing date for the offering?
The expected closing date for the offering is around November 14, 2025.
What will happen to the January 2026 medium term notes?
Capital Power plans to redeem all outstanding January 2026 notes on November 23, 2025, at a price of C$1,000 per note plus accrued interest.
How can investors get in touch with Capital Power?
Investors can contact Capital Power's Investor Relations team at (403) 461-5236 or via email at investor@capitalpower.com for more details and inquiries.
