On May 14, 2024, Capital Power Corporation announced the issuance of $450 million in 8.125% Fixed-to-Fixed Rate Subordinated Notes, Series 2, with maturity on June 5, 2054. Priced at $1,000 per note, the issuance was led by RBC Dominion Securities Inc. and Scotia Capital Inc., with a robust syndicate that included TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., National Bank Financial Inc., Merrill Lynch Canada Inc., ATB Securities Inc., MUFG Securities (Canada), Ltd., Desjardins Securities Inc., iA Private Wealth Inc., Mizuho Securities Canada Inc., and Casgrain & Company Limited. The underwriters' fee was set at 0.75%, totaling $3.375 million, bringing the net proceeds to approximately $445.625 million after fees and estimated expenses of $1 million.

Capital Power plans to use the proceeds to repay credit facilities used in recent acquisitions, redeem its Series 11 preference shares, and for general corporate purposes. Legal counsel included Dentons Canada LLP for Capital Power and Osler, Hoskin & Harcourt LLP for the underwriters.

The notes carry a fixed interest rate of 8.125% until June 5, 2034, with rate resets every five years thereafter, based on the Five-Year Government of Canada Yield plus 4.44%. Capital Power retains the option to defer interest payments for up to five years without triggering an event of default, ensuring flexibility in capital management. This issuance supports Capital Power’s strategic financing and growth objectives.