Capital Power's $667 Million Share Offering Fuels Growth Plans
Capital Power Completes Significant Share Offering
Capital Power Corporation (TSX: CPX) has recently announced the successful closing of its bought deal offering of 11,902,500 common shares. This initial offering price was set at $43.45 per share, yielding gross proceeds of around $517 million. This step marks a significant move for the company as it looks to bolster its growth strategies and enhance its operational framework.
Details of the Offering
The offering, which included the full exercise of an over-allotment option, was first made public on April 14, 2025. The significant backing came from a strong syndicate of underwriters led by TD Securities Inc. and CIBC Capital Markets. Shortly after, on April 15, 2025, Capital Power announced an increase in the offering size, reflecting robust market demand.
Private Placement Insights
Alongside the public offering, Capital Power issued an additional 3,455,000 shares directly to Alberta Investment Management Corporation, raising around $150 million through a private placement. This strategic move allows the company to engage with key stakeholders while ensuring that they maintain strong capital management.
Funding Future Acquisitions
Capital Power plans to utilize the funds acquired from these offerings primarily to help finance the acquisition of Hummel Station, LLC, and Rolling Hills Generating, L.L.C. Hummel Station is a 1,124 MW facility located in Pennsylvania, while the Rolling Hills plant generates 1,023 MW in Ohio. Both acquisitions are essential to Capital Power's strategy of expanding its footprint in the North American energy sector.
Significance of the Acquisition
The anticipated closing of this acquisition is expected to happen in the third quarter of 2025, pending regulatory approvals. These acquisitions will not only enhance Capital Power's energy generation capacity but also align with its commitment to sustainable energy solutions.
Alternative Uses for Proceeds
If the acquisition does not occur, Capital Power remains flexible with the intended use of the net proceeds. The funds could support future growth initiatives, including additional acquisitions or be directed towards reducing outstanding debt, thus reinforcing the company's financial health.
Financial Strategic Moves
By proactively managing its capital structure, Capital Power demonstrates a strong commitment to maintaining a growth-oriented momentum. The balance between debt repayment and investment in new opportunities reflects a robust financial strategy aimed at long-term sustainability.
Company Overview and Commitment to Sustainability
Capital Power is dedicated to generating power sustainably, with around 10 GW of capacity available across 30 North American facilities. The company focuses on delivering reliable, affordable electricity while transitioning to more environmentally responsible power systems. This commitment is reflected in their slogan, "Powering Change by Changing Power™.”
Contact Information for Stakeholders
For those interested in further information or media inquiries, Capital Power encourages reaching out to their Media Relations team. Katherine Perron can be contacted at (780) 392-5335 or via email at kperron@capitalpower.com. Investors can direct their questions to Roy Arthur at (403) 736-3315 or at investor@capitalpower.com.
Frequently Asked Questions
What was the total amount raised in the share offering?
The total gross proceeds from the share offering amounted to approximately $517 million.
What will the funds from the share offering be used for?
The funds will primarily finance the acquisition of Hummel Station, LLC and Rolling Hills Generating, L.L.C., as well as other growth opportunities.
When is the expected closing date for the acquisitions?
The acquisitions are expected to close in the third quarter of 2025, subject to regulatory approvals.
Who were the underwriters for the offerings?
The offering was led by TD Securities Inc. and CIBC Capital Markets.
What is Capital Power's mission?
Capital Power is focused on generating power sustainably and providing reliable energy to communities while fostering innovative and lower-carbon power systems.
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