Capstone sale approved by debenture holders

Written By: Stratton Report
March 17, 2016


On March 17, Capstone Infrastructure Corporation announced that holders of 6.50% convertible unsecured subordinated debentures due December 31, 2016 have approved the resolution authorizing the plan of arrangement.

Per George Matlock of Proactive Investors (Read here) the plan in question is the takeover of Capstone by iCON Infrastructure Partners III LP, for CAD 4.90 ($3.78) cash per share. Capstone, formerly Macquarie Power and Infrastructure Corporation, is an open-ended trust that invests in natural gas cogeneration, wind, hydro, biomass and solar power generation.

Capstone previously gave the total equity value of the transaction as CAD 480 million ($370 million).
The sale was previously approved by Capstone’s common shareholders, holders of Class B exchangeable limited partnership units of MPT LTC Holding LP and holders of the 6.75% extendible convertible unsecured subordinated debentures of Capstone Power Corp. due December 31, 2017.

The arrangement is subject to review by the Supreme Court of British Columbia at a hearing scheduled to take place on March 21, 2016.

Capstone expects the arrangement to be completed in the second quarter of 2016