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Atlantic Power Corporation Message Board

  • tipster999111 tipster999111 May 12, 2014 6:30 PM Flag

    Steady Eddie?

    Due to the aggregate impact of the up-front costs resulting from the prepayments and repurchases of the Company's indebtedness described below, the Company can no longer satisfy the fixed charge coverage ratio test included in the restricted payments covenant of the indenture governing its 9.0% senior unsecured notes. The fixed charge coverage ratio must be at least 1.75 to 1.00 and is measured on a rolling four quarter basis, so the costs associated with debt prepayments and repurchases incurred in the first quarter of 2014 would no longer be included in the calculation beginning in the second quarter of 2015. As a consequence of the non-compliance, further common dividend payments, which are declared and paid at the discretion of the Company's board of directors, in the aggregate cannot exceed the restricted payments "basket" provision of the greater of $50 million and 2% of consolidated net assets (approximately $63 million at March 31, 2014), until such time that the Company satisfies the fixed charge coverage ratio test. The Company paid dividends in February, March and April totaling approximately $11 million that were subject to the basket provision. The dividend declared on April 15 to be paid May 30 will also be subject to the basket provision.

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