Capital Power Considers First-Ever Green Hybrid Subordinated Debt Offering in Canada



Capital Power Company

EDMONTON, Alberta, Aug. 18, 2022 (GLOBE NEWSWIRE) — Capital Power Corporation (“Capital Power” or the “Company”) (TSX:CPX) today announced that it is considering an offering of the first-ever hybrid subordinated debt Green Securities (the “Notes”) in Canada under its short form base shelf prospectus dated June 10, 2022.

If a successful offering is priced and completed, the Company intends to allocate an amount equal to the net proceeds from the sale of the Notes to finance or refinance new or existing “green” investments that meet the eligibility criteria described in the Company’s green financing policy. Frame. Pending such allocation, the Company intends to use the net proceeds from the sale of the Notes to redeem the Company’s outstanding Minimum Adjusted Cumulative Minimum Rate Preferred Shares, Series 9 (TSX: CPX.PR.I) (the “Preferred Shares”) ), to repay certain amounts drawn on the Company’s credit facilities and for general corporate purposes. Although the Company intends to allocate an amount equal to the net proceeds of the offering of Notes to eligible investments, this will not constitute an event of default under the indenture governing the Notes if the Company fails to do so.

There can be no certainty that Capital Power will ultimately complete the contemplated offer or as to when or on the terms on which such an offer may be completed. This press release does not constitute a notice of redemption of the Preferred Shares and there is no certainty that the Company will redeem the Preferred Shares.

The Company has filed with the securities authorities in each of the provinces and territories of Canada a preliminary prospectus supplement to the short form base shelf prospectus of the Company dated June 10, 2022 relating to the potential offering of Notes. Any potential offering, if and when made, would only be made by way of prospectus and would be made pursuant to a final prospectus supplement to the short form base shelf prospectus of the Company dated June 10, 2022. The short form base shelf prospectus and The Preliminary Prospectus Supplement contains important detailed information about the Notes. Copies of these documents are available electronically on the Canadian Securities Administrators’ System for Electronic Document Retrieval (“SEDAR”) at Investors should read the short form base shelf prospectus and the preliminary prospectus supplement, or any final prospectus supplement, before making an investment decision.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes in any jurisdiction. The Notes have not been approved or disapproved by any regulatory authority. The Notes have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities law, and may not be offered or sold in the United States , or to or on behalf of the United States. people.

Forward-looking information

Certain information contained in this press release constitutes forward-looking information within the meaning of Canadian securities laws with respect to anticipated financial and operating performance, events or strategies. Forward-looking information or statements are provided to inform shareholders and potential investors of the Company of management’s assessment of Capital Power’s future plans and operations. This information may not be suitable for other purposes. Forward-looking information in this press release is generally identified by words such as want, anticipate, believe, plan, intend, target and expect, with similar words suggesting future results.

Important forward-looking information contained in this press release includes expectations regarding a potential note offering and the use of proceeds of any successful offering, including the potential redemption of the preferred shares and the allocation of the net proceeds of the offering to eligible investments.

These statements are based on certain assumptions and analyzes made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it deems appropriate, including its review businesses and assets purchased. Important factors and assumptions used in making these forward-looking statements relate to: (i) electricity and other energy prices, (ii) performance, (iii) business prospects (including potential renewal of facilities) and opportunities, including growth and investment projects, (iv) status and impact of policy, legislation and regulation, (v) effective tax rates, (vi) availability and sources of capital, and (vii) the ability to obtain required regulatory approvals.

Whether actual results, performance or achievements will be consistent with the Company’s expectations and projections is subject to a number of known and unknown risks and uncertainties that could cause results and actual experience differ materially from the Company’s expectations. These important risks and uncertainties are: (i) variations in electricity, natural gas and carbon prices in the markets in which the Company operates and the use of derivative instruments, (ii) regulatory and political environments , including changes in environmental, financial reporting, market structure and tax legislation and the receipt and timing thereof of required regulatory approvals, (iii) the availability and performance of production facilities , including equipment maintenance, (iv) ability to fund current and future capital and working capital requirements, (v) acquisitions and developments, including the timing and costs of regulatory approvals and construction, (vi) fluctuations in market prices and fuel availability, (vii) the ability to realize the anticipated benefits of acquisitions, (vii) inherent limitations subject to the Company’s review of the acquired assets, (viii) changes in general economic and competitive conditions, including interest and exchange rate fluctuations, and (ix) changes in performance and cost technologies and the development of new energy efficient technologies, products, services and programs. See “Risks and Risk Management” in the Company’s 2021 MD&A for further discussion of these and other risks.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of endorsement specified. The Company neither undertakes nor accepts any obligation or undertaking to issue updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances about which a such statement is based, except as required by law.

About Capital Power

Capital Power (TSX: CPX) is a growth-oriented, strategically focused North American wholesale power producer in sustainable energy headquartered in Edmonton, Alberta. We build, own and operate high-quality, large-scale generation facilities that include renewable and thermal energy. We have also made significant investments in carbon capture and use to reduce carbon impacts and are committed to going coal-free by 2023. Capital Power has approximately 6,600 MW of power generation capacity in 27 facilities in North America. Projects in advanced development include approximately 385 MW of renewable power generation capacity held in North Carolina and Alberta and 512 MW of additional natural gas-fired combined cycle capacity from the Genesee 1 and 2 resupply in Alberta.

For more information please contact:

Media Relations:
Catherine Perron
(780) 392-5335
[email protected]

Investor Relations:
Randy Mah
(780) 392-5305 or (866) 896-4636 (toll free)
[email protected]

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