New Stock Arbitrage — Northland Power Inc.
Northland is an independent power producer founded in 1987, and publicly traded since 1997. Northland develops, builds, owns and operates facilities that produce ‘clean’ (natural gas) and ‘green’ (wind, solar, and hydro) energy, providing sustainable long-term value to shareholders, stakeholders, and host communities.
Northland owns or has an economic interest in 2,429 MW (net 2,014 MW) of operating generating capacity and 269 MW of generating capacity under construction, representing the Deutsche Bucht offshore wind project in the North Sea, in addition to its 60% equity stake in the 1,044 MW Hai Long projects under development in Taiwan.
Northland Power Inc. announced yesterday it entered into an agreement with a syndicate of underwriters co-led by CIBC Capital Markets and National Bank Financial pursuant to which the Underwriters have agreed to purchase on a bought deal basis an aggregate of 12,990,000 Subscription Receipts at an offering price of $24.25 per Subscription Receipt for total gross proceeds of $315 million. The Offering is expected to close on September 18, 2019.
Northland intends to use the net proceeds from the Offering to partially finance the acquisition of a 99.2% interest in the regulated utility Empresa de Energía de Boyacá pursuant to the terms of a definitive agreement entered into between the parties thereto. The Acquisition is expected to close in fourth quarter of 2019.