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EDMONTON, Alberta - Capital Power Corporation (TSX: CPX), an independent power producer with a market capitalization of $61.91 million and 17.3% revenue growth in the last twelve months, has launched a private offering of $1.2 billion in senior notes, the company stated today. The offering consists of $700 million of 5.257% senior notes due 2028 and $500 million of 6.189% senior notes due 2035, to be issued by its U.S. subsidiary, Capital Power (US Holdings) Inc. According to InvestingPro analysis, the company maintains a healthy P/E ratio of 15.13x.
The notes, guaranteed by Capital Power and its subsidiaries, are slated to close on May 28, 2025, contingent on customary conditions. The proceeds are earmarked to partially fund the acquisition of two natural gas facilities, Hummel Station in Pennsylvania and Rolling Hills Generating in Ohio, collectively adding over 2,100 MW to Capital Power’s capacity. InvestingPro data shows the company maintains a "GOOD" overall financial health score, suggesting strong positioning for this expansion.
If the acquisition is not finalized by January 15, 2026, or an agreed-upon extended date, the company will redeem the 2035 Notes and allocate the remaining proceeds to other corporate initiatives, including potential acquisitions and capital development.
The notes are being offered to qualified institutional buyers and non-U.S. persons in compliance with Rule 144A and Regulation S under the U.S. Securities Act, respectively. They have not been registered under the U.S. Securities Act or any state securities laws and are not available for sale in the United States or Canada except under specific exemptions.
This news release contains forward-looking statements regarding the anticipated use of proceeds and the offering’s expected closing date. Capital Power cautions that these statements are subject to risks and uncertainties, including regulatory approvals and completion of the acquisition.
Capital Power, headquartered in Edmonton, operates approximately 10 GW of generation capacity across North America. The company focuses on delivering reliable and affordable power, transitioning to lower-carbon energy, and promoting sustainable energy solutions.
This report is based on a press release statement from Capital Power Corporation.
In other recent news, Capital Power reported its fourth-quarter 2024 earnings, showcasing a slight increase in adjusted EBITDA to $330 million compared to the previous year. However, the full-year 2024 adjusted EBITDA saw a decline of $122 million, totaling $1.333 billion. The company experienced significant growth in its U.S. portfolio, with EBITDA increasing from $369 million in 2023 to $656 million in 2024. Capital Power completed the Genesee repowering project, transitioning to 100% natural gas, which marked a notable milestone in enhancing capacity and reducing emissions. The company also provided guidance for 2025, projecting adjusted EBITDA between $1.340 billion and $1.440 billion and an AFFO target of $850 million to $950 million. Analysts from RBC Capital Markets and Scotiabank engaged with Capital Power executives during the earnings call, discussing topics such as data center opportunities and market conditions for mergers and acquisitions. The company remains focused on data center opportunities and potential mergers and acquisitions in key markets.
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