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

The following is a set of excerpts from the prospectus document for AQN.PR.D. 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.D 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

ALGONQUIN POWER & UTILITIES CORP. 4,000,000 Cumulative Rate Reset Preferred Shares, Series D (the “Series D Preferred Shares”)

Excerpt: Reset Date and Yield Terms

The holders of the Series D Shares will be entitled to receive fixed cumulative dividends at an annual rate of $1.25 per share, payable quarterly, as and when declared by the board of directors of APUC. The Series D Shares will yield 5.00% per cent annually, for the initial period ending on March 31, 2019. The first of such dividends, if declared, shall be payable on June 30, 2014, and shall be $0.4007 per Series D Share, based on the anticipated closing of the offering on March 5, 2014. The dividend rate will be reset on March 31, 2019 and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 3.28%. The Series D Shares are redeemable by APUC, at its option, on March 31, 2019 and on March 31 of every five years thereafter.

Excerpt: Conversion Terms

The holders of Series D Shares will have the option to convert all or any of their Series D Shares into Cumulative Floating Rate Preferred Shares, Series E (the “Series E Shares”) of APUC on the basis of one Series E Share for each Series D Share converted, subject to certain conditions, on March 31, 2019 and on March 31 every five years thereafter. The holders of the Series E Shares will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the board of directors of APUC, at a rate equal to the sum of the then 90-day Government of Canada treasury bill rate plus 3.28%.