M&A

30 November, 2009

UPDATE 1-Atlantic Power to raise C$75 mln in bought deal

* To issue convertible debentures at 6.25 pct interest

* To use proceeds to repay debt

Nov 30 (Reuters) - Canada's Atlantic Power Corp (ATP.TO) said it would raise C$75 million ($71.1 million) by issuing convertible debentures on a bought-deal basis to repay debt.

The company said it would use about C$42.7 million of the net proceeds to retire nearly all of the outstanding 11 percent subordinated notes due 2016, while the remainder would be used to fund growth opportunities.

The debentures will bear an interest rate of 6.25 percent per annum and will be convertible at a rate of 76.9231 shares per C$1,000 of debentures, equal to C$13 per share, the company said.

The underwriters, led by BMO Capital Markets, can buy an additional 15 percent of the principal amount for a period of 30 days following the closing to cover over-allotments, Atlantic Power said.

Shares of Atlantic Power closed at C$10.35 Friday on the Toronto Stock Exchange.

($1=1.055 Canadian dollar) (Reporting by Amit Kumar in Bangalore; Editing by Anne Pallivathuckal) ((amit.kumar.edit@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 4135 5800; Reuters Messaging: amit.kumar.edit@thomsonreuters.com@reuters.net))

Source: http://www.reuters.com