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Friday, June 30, 2023 11:18:17 AM
AQNU is scheduled to pay $3.875 in dividends vs $0.434 for the common. It is convertible into 8.3333 shares.
Please that AQNU at $29.26 today trades, which equates to a conversion value of $8.78. The common was trading at $8.28.
Algonquin Power & Utilities Corp. Equity Units Due 06/15/2024
Ticker Symbol: AQNU CUSIP: 015857873 Exchange: NYSE
Security Type: Mandatory Convertible Security
QUANTUMONLINE.COM SECURITY DESCRIPTION: Algonquin Power & Utilities Corp. Equity Units, stated amount $50 per unit, initially consisting of Corporate Units which include a stock purchase contract due 06/15/2024 and a 1/20 undivided beneficial ownership interest in a 1.18% remarketable senior notes due 2026 with a principal amount of $1000.00.
The stock purchase contract requires the holder to purchase for $50 a variable number of shares of Algonquin Power & Utilities Corp. (NYSE:AQN) common stock no later than 06/15/2024 and pays a contract adjustment rate of 6.57% per annum. The stock purchase settlement rate will be 2.7778 shares per unit if the then current market price is equal to or greater than $18.00 and 3.3333 shares per unit if the market price is equal to or less than $15.00. For market prices between those values the settlement rate will be $50 divided by the market value. Prior to the IPO of this security, the last reported sale price of the common stock on 06/15/2021 was $16.08 per share. The stock purchase contract may be settled any time at the holder’s option and the company will deliver 2.7778 shares of common stock for each purchase contract.
The 1.18% remarketable senior notes due 2026 is due 06/15/2026 and is subject to reset and remarketing between 03/13/2024 and 05/30/2024, with a final remarketing in a five day period ending on 06/13/2024. The 1.18% remarketable senior notes due 2026 are pledged as collateral to secure the holder's obligations under the stock purchase contract.
The Corporate Units pay quarterly distributions of 7.75% ($3.875 per annum on 3/15, 6/15, 9/15 & 12/15 to holders of record on the record date which will be 3/1, 6/1, 9/1, & 12/1 prior to the payment date (NOTE: the ex-dividend date is one business day prior to the record date).
Distributions paid by these securities are derived from interest paid on the underlying debt securities and therefore 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 holder has the right at any time to convert the Corporate Units to Tresury Units by the substitution of a specified zero-coupon U.S. Treasury security for the 1.18% remarketable senior notes due 2026 and to later recreate Corporate Units.
The 1.18% remarketable senior notes due 2026 are unsecured and rank equally with the company's other unsecured senior indebtedness. This security was Not rated by Moody’s and Rated BB+ by S&P at the date of its IPO. See the IPO prospectus for extensive additional information on the equity units and their mandatory conversion provisions.
"Someone said it takes 30 years to be an instant success" - Gabriel Barbier-Mueller, Founder and CEO of Harwood International
Recent AQN News
- Algonquin Power & Utilities Corp. to Add Brett Carter and Christopher Lopez to the Board of Directors • PR Newswire (US) • 04/18/2024 09:17:00 PM
- Algonquin Power & Utilities Corp. to Add Brett Carter and Christopher Lopez to the Board of Directors • PR Newswire (Canada) • 04/18/2024 09:17:00 PM
- Algonquin Power & Utilities Corp. Announces Date for First Quarter 2024 Financial Results and Conference Call • PR Newswire (Canada) • 04/10/2024 09:00:00 PM
- Algonquin Power & Utilities Corp. Announces Date for First Quarter 2024 Financial Results and Conference Call • PR Newswire (US) • 04/10/2024 09:00:00 PM
- Algonquin Power & Utilities Corp. Announces Successful Remarketing of 1.18% Senior Notes due 2026 • PR Newswire (US) • 03/27/2024 01:29:00 AM
- Algonquin Power & Utilities Corp. Announces Successful Remarketing of 1.18% Senior Notes due 2026 • PR Newswire (Canada) • 03/27/2024 01:29:00 AM
- Algonquin Comments on Starboard Value Director Nominations • PR Newswire (US) • 03/22/2024 10:30:00 AM
- Algonquin Comments on Starboard Value Director Nominations • PR Newswire (Canada) • 03/22/2024 10:30:00 AM
- Starboard Value Nominates Three Highly Qualified and Independent Candidates for Election to Algonquin Power’s Board of Directors • Business Wire • 03/21/2024 09:09:00 PM
- Algonquin Power & Utilities Corp. Announces Results of Exercise of Conversion Rights of Cumulative Rate Reset Preferred Shares, Series D • PR Newswire (Canada) • 03/19/2024 10:30:00 AM
- Algonquin Power & Utilities Corp. Announces Results of Exercise of Conversion Rights of Cumulative Rate Reset Preferred Shares, Series D • PR Newswire (US) • 03/19/2024 10:30:00 AM
- Form F-X - Appointment of Agent for Service of Process and Undertaking • Edgar (US Regulatory) • 03/08/2024 10:29:45 PM
- Form F-X - Appointment of Agent for Service of Process and Undertaking • Edgar (US Regulatory) • 03/08/2024 10:29:34 PM
- Form F-10 - Registration Statement for Securities of certain Canadian Issuers. • Edgar (US Regulatory) • 03/08/2024 10:12:55 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/08/2024 12:02:19 PM
- Form 40-F - Registration statement [Section 12] or Annual Report [Section 13(a), 15(d)] • Edgar (US Regulatory) • 03/08/2024 12:00:28 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/08/2024 11:57:50 AM
- Algonquin Power & Utilities Corp. Announces 2023 Fourth Quarter and Full Year Financial Results • PR Newswire (Canada) • 03/08/2024 11:30:00 AM
- Algonquin Power & Utilities Corp. Declares First Quarter 2024 Common Share Dividend of U.S.$0.1085 (C$0.1468), and Declares First Quarter 2024 Preferred Share Dividends • PR Newswire (US) • 03/08/2024 11:30:00 AM
- Algonquin Power & Utilities Corp. Announces 2023 Fourth Quarter and Full Year Financial Results • PR Newswire (US) • 03/08/2024 11:30:00 AM
- Algonquin Power & Utilities Corp. Declares First Quarter 2024 Common Share Dividend of U.S.$0.1085 (C$0.1468), and Declares First Quarter 2024 Preferred Share Dividends • PR Newswire (Canada) • 03/08/2024 11:30:00 AM
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- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/04/2024 10:21:03 PM
- Algonquin Power & Utilities Corp. Announces Dividend Rates on Cumulative Rate Reset Preferred Shares, Series D, and Cumulative Floating Rate Preferred Shares, Series E • PR Newswire (Canada) • 03/04/2024 10:00:00 PM
- Algonquin Power & Utilities Corp. Announces Dividend Rates on Cumulative Rate Reset Preferred Shares, Series D, and Cumulative Floating Rate Preferred Shares, Series E • PR Newswire (US) • 03/04/2024 10:00:00 PM
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