AQN.PR.A Algonquin Power & Utilities Corp Preferred Shares Series A

The following is a set of excerpts from the prospectus document for AQN.PR.A. The excerpts highlight the most relevant information an investor should know when analyzing this preferred. A link to the prospectus is provided lower in this page. The original document for AQN.PR.A Algonquin Power & Utilities Corp Preferred Shares Series A was used for the excerpts and the important information was highlighted for quick access.

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Excerpt: Size and initial yield

November 2, 2012 . ALGONQUIN POWER & UTILITIES CORP. $120,000,000 4,800,000 Cumulative Rate Reset Preferred Shares, Series A

This short form prospectus qualifies the distribution (the “Offering”) of 4,800,000 Cumulative Rate Reset Preferred Shares, Series A (the “Series A Shares”) of Algonquin Power & Utilities Corp. (“Algonquin” or the “Corporation”) at a price of $25.00 per Series A Share (the “Offering Price”). For the initial six year period from and including the Closing Date (as defined below) to, but excluding December 31, 2018 (the “Initial Fixed Rate Period”), the holders of Series A Shares will be entitled to receive fixed cumulative preferential cash dividends, as and when declared by the board of directors of the Corporation (the “Board of Directors”), payable quarterly on the last business day of March, June, September and December in each year at an annual rate equal to $1.1250 per Series A Share. The initial dividend, if declared, will be payable December 31, 2012 and will be $0.1603 per Series A Share, based on the anticipated closing date of November 9, 2012 (the “Closing Date”). See “Details of the Offering”.

Excerpt: Reset Date and Yield Terms

For each five-year period after the Initial Fixed Rate Period (each, a “Subsequent Fixed Rate Period”), the holders of the Series A Shares will be entitled to receive fixed cumulative preferential cash dividends, as and when declared by the Board of Directors, payable quarterly on the last business day of each of March, June, September and December in each year during the Subsequent Fixed Rate Period, in an annual amount per Series A Share determined by multiplying the Annual Fixed Dividend Rate (as defined below) applicable to such Subsequent Fixed Rate Period by $25.00. The Annual Fixed Dividend Rate for each Subsequent Fixed Rate Period will be equal to the sum of the Government of Canada Yield (as defined herein) on the 30th day prior to the first day of such Subsequent Fixed Rate Period plus 2.94%. See “Details of the Offering”.

Excerpt: Conversion Terms

Each holder of Series A Shares will have the right, at its option, to convert all or any of its Series A Shares into Cumulative Floating Rate Preferred Shares, Series B (the “Series B Shares”) of the Corporation on the basis of one Series B Share for each Series A Share converted, subject to certain conditions, on December 31, 2018 and on December 31 (or the next business day, if such day is not a business day) every five years thereafter. The holders of Series B Shares will be entitled to receive floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors, payable quarterly on the last business day of March, June, September and December in each year, in the annual amount per Series B Share determined by multiplying the applicable Floating Quarterly Dividend Rate (as defined herein) by $25.00. The Floating Quarterly Dividend Rate for a Quarterly Floating Rate Period (as defined herein) will be equal to the sum of the T-Bill Rate (as defined herein) plus 2.94% per annum (calculated on the basis of the actual number of days in the applicable Quarterly Floating Rate Period divided by 365) determined on the 30th day prior to the first day of the applicable Quarterly Floating Rate Period. See “Details of the Offering”.