Capital Power Corp.
TSX : CPX

Capital Power Corp.
EPCOR Utilities Inc.

EPCOR Utilities Inc.

April 02, 2015 08:41 ET

Capital Power and EPCOR Announce Completion of $225 Million Secondary Offering of Common Shares and Closing of Exercise of Over-Allotment Option

EDMONTON, ALBERTA--(Marketwired - April 2, 2015) -

NOT FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Capital Power Corporation (TSX:CPX) ("Capital Power") and EPCOR Utilities Inc. ("EPCOR") announced today that EPCOR has completed its sale of 9,450,000 common shares of Capital Power at an offering price of $23.85 per common share for aggregate gross proceeds to EPCOR Power Development Corporation ("EPDC") of $225,382,500. The aggregate offering is comprised of the previously announced offering of 9,000,000 shares at $23.85 per share for gross proceeds of approximately $214 million, together with the underwriters exercising the over-allotment option for the sale of an additional 450,000 shares at $23.85 per share for additional gross proceeds of approximately $11 million. The underwriting syndicate for the offering was co-led by CIBC and TD Securities Inc. as bookrunners.

In connection with the offering, EPDC has exchanged (the "Exchange") all of its remaining outstanding Exchangeable Common Limited Partnership Units of Capital Power L.P., not otherwise exchanged in connection with the closing of the secondary offering, for common shares of Capital Power in accordance with the terms of the Exchangeable Common Limited Partnership Units. After giving effect to the secondary offering and Exchange EPCOR owns approximately 9.1% of the common shares of Capital Power.

EPCOR plans to eventually sell all or a substantial portion of its remaining interest in Capital Power subject to market conditions, based on its requirements for capital and other circumstances that may arise in the future. EPCOR anticipates that future sales of common shares by it will be completed by other means including through the facilities of the Toronto Stock Exchange, private agreement or other suitable arrangements available under applicable law. Additionally, as the Registration Rights Agreement between EPCOR and Capital Power has been terminated in accordance with its terms following the secondary offering and Exchange, Capital Power will no longer be obligated to assist EPCOR in making a secondary offering under a prospectus.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Capital Power in the United States or in any jurisdiction in which such offer, solicitation of sale would be unlawful. These securities have not been and will not be registered under the U.S. Securities Act or any U.S. state securities laws and may not be offered or sold in the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom.

Forward-Looking Information

Certain information in this news release relating to EPCOR and Capital Power is forward-looking within the meaning of Canadian securities laws as it relates to anticipated financial performance, events or strategies. When used in this context, words such as "will", "anticipate", "believe", "plan", "intend", "target" and "expect" or similar words suggest future outcomes. The purpose of forward-looking information is to provide investors with management's assessment of future plans and possible outcomes and may not be appropriate for other purposes.

Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements. Except as required by law, each of EPCOR and Capital Power disclaim any intention and assumes no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.

About Capital Power

Capital Power (TSX:CPX) is a growth-oriented North American power producer headquartered in Edmonton, Alberta. The company develops, acquires, operates and optimizes power generation from a variety of energy sources. Capital Power owns more than 3,100 megawatts of power generation capacity at 16 facilities across North America and owns 371 megawatts of capacity through a power purchase agreement. An additional 620 megawatts of owned generation capacity is under construction or in advanced development in Alberta and Ontario. Capital Power's website is: www.capitalpower.com.

About EPCOR Utilities Inc.

EPCOR's wholly-owned subsidiaries build, own and operate electrical transmission and distribution networks, water and wastewater treatment facilities and infrastructure in Canada and the United States. The company's subsidiaries also provide electricity and water services and products to residential and commercial customers. EPCOR, headquartered in Edmonton, Alberta, is an Alberta Top 70 employer. EPCOR's website is www.epcor.com.

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