QUANTUMONLINE.COM SECURITY DESCRIPTION: Algonquin Power & Utilities Corp., 6.20% Fixed-to-Floating Rate Subordinated Notes, Series 2019-A due 7/1/2079, issued in $25 denominations, redeemable at the issuer's option on or after 7/1/2024 at $25 per note plus accrued and unpaid interest, and maturing 7/1/2079. Interest distributions at a fixed rate of 6.20% per annum ($1.55 per annum or $0.3875 per quarter) will be paid quarterly on 1/1, 4/1, 7/1 & 10/1 to holders of record on the record date that will be 12/15, 3/15, 6/15, & 9/15 respectively (NOTE: the ex-dividend date is one business day prior to the record date). From 7/1/2024, on every Interest Reset Date until 7/1/2029, the interest rate on the Notes will be reset at an interest rate per annum equal to the three month LIBOR plus 4.01%. From 7/1/2029, on every Interest Reset Date until 7/1/2049, the interest rate on the Notes will be reset on each Interest Reset Date at an interest rate per annum equal to the three month LIBOR plus 4.26%. From 7/1/2049, on every Interest Reset Date until 7/1/2079, the interest rate on the Notes will be reset on each Interest Reset Date at an interest rate per annum equal to the three month LIBOR plus 5.01%.
Distributions paid by these debt securities are interest and as such are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders.
The Company may elect to defer the interest payable on the Notes on one or more occasions for up to five consecutive years (see prospectus for further information).
After the occurrence of a Tax Event, the Company may redeem all of the Notes at a redemption price per $25 together with accrued and unpaid interest (see prospectus for further information). If a Rating Event occurs the Company may redeem all of the Notes at a redemption price per $25 principal amount of the Notes equal to 102% of the principal amount thereof, together with accrued and unpaid interest (see prospectus for further information). The Notes, including accrued and unpaid interest thereon, will be converted automatically, without the consent of the holders thereof, into shares of a newly-issued series of preferred shares of the Corporation upon the occurrence of an Automatic Conversion Event (see prospectus for further information).
Units are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest.
This security was Not rated by Moody’s and rated BB+ by S&P at the date of its IPO. This security was rated as BB+ by Fitch Ratings at the date of its IPO. The Notes are unsecured, subordinated obligations of the company and will rank equally with all existing and future unsecured, subordinated indebtedness of the company. See the IPO prospectus for further information on the debt securities by clicking on the ‘Link to IPO Prospectus’ provided below.
