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. (“Northland”) (TSX:NPI.TO) announced yesterday that Northland Power Holdings Inc. has entered into an agreement with Northland and a syndicate of underwriters led by CIBC Capital Markets (collectively the “Underwriters”), pursuant to which the Underwriters have agreed to purchase on a bought deal basis an aggregate of 32,120,000 common shares (the “Shares”) of Northland held by Northland Power Holdings Inc. and/or other entities controlled, directly or indirectly, by Jim Temerty (collectively the “Selling Shareholder”) at an offering price of $23.35 per Share (the “Offering Price”) for total gross proceeds to the Selling Shareholder of approximately $750 million (the “Offering”). Northland will not receive any proceeds from the Offering.

Stock Name Northland
Stock Symbol NPI
Exchange TSX, Toronto Stock Exchange
Issuer Northland Power Inc.
Offering 32,120,000 Common Shares
Amount $750,002,000, prior to the Over-Allotment Option
Issue Price $23.35 per Common Share
Drawdown Price $22.89 per Common Share
Closing Date On or about April 5, 2019
Underwriter CIBC Capital Markets


After the news was released, Northland stock price fell to $23.00 upon market opening and then climbed slightly to around $23.40. Before April 5th, the Arbitrage Club will pay close attention to the price trend of the stock and seek opportunities for new stock arbitrage. Interested group members please keep close attention to future updates.


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