Northland Power Inc. on March 18 launched a secondary offering of 32,120,000 common shares at C$23.35 per share for gross proceeds to selling shareholder of about C$750.0 million.
A syndicate of underwriters led by CIBC Capital Markets agreed to purchase on a bought-deal basis those shares, which are held by Northland Power Holdings Inc. and/or other entities controlled by Northland Power Chairman Jim Temerty. The underwriters have a 30-option to purchase up to an additional 4,818,000 shares, totaling C$113 million in gross proceeds.
The offering is expected to close by April 5, subject to customary conditions.
Temerty said the offering is being made for estate planning purposes and that he will remain committed to being a long-term shareholder of the company.
Upon completion, entities controlled by Temerty will own about 14.7% of the issued and outstanding voting shares in the company. If the overallotment option is exercised in full, they will own about 12.0% of the issued and outstanding voting shares of the company.