Northland Power Income Fund Announces Issue Of Additional $9.8 Million Of Trust Units Pursuant To Exercise Of Over-Allotment Option
Wednesday, March 19, 2003
TORONTO, ONTARIO--Northland Power Income Fund (TSX: NPI.UN) ("Northland Power" or the "Fund") is pleased to announce that the syndicate of underwriters led by CIBC World Markets Inc. has purchased an additional 907,500 trust units at $10.75 each for gross proceeds of $9,755,625, upon the exercise of an over-allotment option granted to the underwriters in connection with the recent offering of 6,050,000 trust units. After the exercise of this option, the Fund will have issued 6,957,500 units at $10.75 for aggregate gross proceeds of $74,793,125 and net proceeds of $71,053,469.
The net proceeds from the issue were used by the Fund to repay the acquisition line of credit which was drawn on for the purpose of the previously announced acquisition of a 25% interest in Kingston CoGen and new gas turbines for the Iroquois Falls plant. The Fund expects to have approximately $28 million in excess cash from the unit offering available for future Permitted Acquisitions under the terms of its trust indenture.
This news release shall not constitute an offer to sell or a solicitation to buy the securities in any jurisdiction. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.
Northland Power Income Fund is a trust that supplies electricity to Ontario Electricity Financial Corporation, an agency of the government of Ontario, and steam to manufacturing plants. Sales are made under long-term contracts to ensure revenue stability. Long-term contracts also assure the supply and price of natural gas, which is the Fund's largest cost.
The Fund owns a 110 MW cogeneration power plant located in Iroquois Falls, Ontario and a 25% interest in a 110 MW cogeneration power plant located near Kingston, Ontario, and is seeking additional energy-related investments |
