Algonquin Power & Utilities Corp 6-K, filed Aug 19, 2024

Algonquin Power & Utilities Corp. (AQN)

6-K 2024-08-19 For: 2024-08-19

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Added on April 09, 2026

About this 6-K

Algonquin Power & Utilities Corp filed this 6-K on August 19, 2024.

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Exhibit		Description

99.1		Material Change Report - Form 51-102F3

99.2		Securities Purchase Agreement, dated August 9, 2024, by and among Algonquin Power & Utilities Corp. and Altius Renewables, ULC

	ALGONQUIN POWER & UTILITIES CORP.
	(registrant)

Date: August 19, 2024	By:	/s/ Darren Myers
	Name:	Darren Myers
	Title:	Chief Financial Officer

			Page

ARTICLE I DEFINITIONS			1

	Section 1.1	Certain Defined Terms	1
	Section 1.2	Table of Definitions	27

ARTICLE II PURCHASE AND SALE			31

	Section 2.1	Purchase and Sale of the Purchased Interests	31
	Section 2.2	Closing.	31
	Section 2.3	Purchase Price Adjustments.	33
	Section 2.4	Tax Withholding	39

ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLER			40

	Section 3.1	Organization and Qualification	40
	Section 3.2	Authority	40
	Section 3.3	No Conflict; Required Filings and Consents.	41
	Section 3.4	Capitalization	42
	Section 3.5	Purchased Interests	43
	Section 3.6	Business Financial Statements	43
	Section 3.7	Absence of Certain Changes or Events	46
	Section 3.8	Compliance with Law; Permits.	46
	Section 3.9	Litigation; Orders	47
	Section 3.10	Employee Benefit Plans.	48
	Section 3.11	Labor and Employment Matters	50
	Section 3.12	Insurance	51
	Section 3.13	Real Property; Personal Property; Sufficiency of Assets	51
	Section 3.14	Intellectual Property.	53
	Section 3.15	Privacy Laws	53
	Section 3.16	Taxes	54
	Section 3.17	Environmental Matters.	59
	Section 3.18	Material Contracts.	59
	Section 3.19	International Trade Laws.	62
	Section 3.20	FERC Representations	62
	Section 3.21	Related Party Transactions	63
	Section 3.22	Brokers	63
	Section 3.23	Bank Accounts	63
	Section 3.24	Indigenous Groups	64
	Section 3.25	Credit Supports	64
	Section 3.26	Exclusivity of Representations and Warranties	64

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BUYER			64

			Page

	Section 4.2	Authority	65
	Section 4.3	No Conflict; Required Filings and Consents	65
	Section 4.4	Financing	66
	Section 4.5	Investment Intent	67
	Section 4.6	Litigation	67
	Section 4.7	Brokers	68
	Section 4.8	Investment Funds	68
	Section 4.9	Compliance with Laws	68
	Section 4.10	Investment Canada Act	68
	Section 4.11	Qualified Transferee; No Disqualified Transferee	68
	Section 4.12	CFIUS Foreign Person Status	68

ARTICLE V COVENANTS			69

	Section 5.1	Conduct of Business Prior to the Closing	69
	Section 5.2	Covenants Regarding Information	77
	Section 5.3	Contact with Business Relations	78
	Section 5.4	Confidentiality	78
	Section 5.5	Regulatory Approvals; Consents.	79
	Section 5.6	Public Announcements	82
	Section 5.7	R&W Insurance Policy	83
	Section 5.8	Pre-Closing Reorganization	83
	Section 5.9	Pre-Closing Share Issuance and Acquisition.	83
	Section 5.10	Disclosed Personal Information	84
	Section 5.11	Replacement of Credit Support Obligations	85
	Section 5.12	Class B Guaranties; Tax Equity Financing Deliverables	87
	Section 5.13	Tax Matters	88
	Section 5.14	Name Change	96
	Section 5.15	Intercompany Arrangements	96
	Section 5.16	Directors’ and Officer’s Indemnification	97
	Section 5.17	Rightsizing Transactions	98
	Section 5.18	[Redacted]	98
	Section 5.19	Redemption/Prepayment of Specified Funded Indebtedness	99
	Section 5.20	Employee Matters	99
	Section 5.21	[Reserved]	100
	Section 5.22	Financing	100
	Section 5.23	Insurance	103
	Section 5.24	Buyer Limited Guarantee	104
	Section 5.25	Tax Equity Matters	104
	Section 5.26	[Reserved]	105
	Section 5.27	[Redacted]	105
	Section 5.28	[Redacted]	105

			Page

	Section 5.29	Casualty and Condemnation	106
	Section 5.30	[Redacted]	107
	Section 5.31	[Redacted]	107
	Section 5.32	Specified Projects	108
	Section 5.33	PTCs	108
	Section 5.34	Retained Matters	108
	Section 5.35	Buyout Transaction	108
	Section 5.36	Cross-Currency Swaps	108
	Section 5.37	[Redacted]	109
	Section 5.38	Business Cash Flow Statements	109
	Section 5.39	Settlement of Construction Projects Claims	109

ARTICLE VI CONDITIONS TO THE CLOSING			109

	Section 6.1	General Conditions	109
	Section 6.2	Conditions to Obligations of Seller at the Closing	110
	Section 6.3	Conditions to Obligations of Buyer at the Closing	110
	Section 6.4	Frustration of Closing Conditions	111

ARTICLE VII INDEMNIFICATION			111

	Section 7.1	Indemnification by Seller	111
	Section 7.2	Procedures	111
	Section 7.3	Assignment of Claims	114
	Section 7.4	Treatment of Certain Payments	114

ARTICLE VIII TERMINATION			114

	Section 8.1	Termination	114
	Section 8.2	Effect of Termination	115
	Section 8.3	Buyer Termination Fee	115

ARTICLE IX MISCELLANEOUS			116

	Section 9.1	Non-Survival	116
	Section 9.2	Buyer’s Investigation and Reliance	117
	Section 9.3	Fees and Expenses	117
	Section 9.4	Amendment and Modification	118
	Section 9.5	Waiver; Extension	118
	Section 9.6	Notices	118
	Section 9.7	Interpretation	119
	Section 9.8	Entire Agreement	120
	Section 9.9	Parties in Interest	120

		Page

Section 9.10	Governing Law	120
Section 9.11	Submission to Jurisdiction	121
Section 9.12	Disclosure Generally	122
Section 9.13	Assignment; Successors	122
Section 9.14	Specific Performance	122
Section 9.15	Currency	123
Section 9.16	Severability	123
Section 9.17	Waiver of Jury Trial	124
Section 9.18	Counterparts	124
Section 9.19	Electronic Signature	124
Section 9.20	Time of Essence	124
Section 9.21	Legal Representation	124
Section 9.22	No Presumption Against Drafting Party	126
Section 9.23	Further Assurances	126
Section 9.24	Non-Recourse	126
Section 9.25	Releases	127

Exhibit A	Applicable Accounting Principles
Exhibit B	Reference Balance Sheet
Exhibit C	Project Expenditures Budget
Exhibit D	[Reserved]
Exhibit E	Form of Transition Services Agreement
Exhibit F	Form of Class B Guaranty
Exhibit G	[Reserved]
Exhibit H	Form of Amendments to Limited Liability Company Agreements
Exhibit I	Form of Bill of Sale or Assignment and Assumption Agreement
Exhibit J	Form of Earnout Agreement
Exhibit K	Form of Self-Monetization LLCA Amendments

Acceptable Transferee	5.12(b)
Acquisition Engagement	9.21(a)
Agreement	Preamble
Alternative Financing	5.22(c)
Anti-Corruption Laws	3.8(c)
Anti-Money Laundering Laws	4.8
APBHH	3.6(f)
APBHH Balance Sheet	3.6(f)
APBHH Business Financial Statements	3.6(f)
Balance Sheet	3.6(a)

Business Cash Flow Statements	3.6(j)
Business Financial Statements	3.6(a)
Buyer	Preamble
Buyer Credit Support Cap	5.11(a)
Buyer Indemnified Party	7.1
Buyer Letter of Credit	5.11(b)
Buyer Parties	5.15(b)
Buyer Releasees	9.25(b)
Buyer Releasors	9.25(a)
Buyer Termination Fee	8.3(a)
Carvers Creek TE Shortfall Amount	2.3(j)(i)
Clearview Tax Equity Documents	5.25(c)(i)
Closing	2.2(a)
Closing Carvers Creek Tax Equity Amount	2.3(b)
Closing Cash	2.3(b)
Closing Date	2.2(a)
Closing Development Projects 2025 Pre-Locked Box Spending Amount	2.3(b)
Closing Development Projects Adjustment Amount	2.3(b)
Closing Heller RNG Sale-Leaseback Amount	2.3(b)
Closing Indebtedness	2.3(b)
Closing Leakage Amount	2.3(b)
Closing Locked Box Period Capital Expenditure Amount	2.3(b)
Closing Net Working Capital	2.3(b)
Closing Property Tax Amount	2.3(b)
Closing Specified Funded Indebtedness	2.3(b)
Closing Transaction Expenses	2.3(b)
Company	Recitals
Company Partnership	5.13(b)(iv)(1)
Company Trusts	5.13(b)(iv)(2)
Condemnation Value	5.29(b)
Confidential Information	5.4
Construction	1.1
Continuing Credit Support Obligations	5.11(b)
Continuing Employee	5.20(a)
Counsel Communications	9.21(b)
CRA	5.13(b)(iv)(1)
Cross-Currency Swaps	5.36
Debt Financing	4.4(d)
Definitive Agreements	5.22(a)
Disclosed Personal Information	5.10
Disqualified Transferee	5.12(b)
DPA	4.12
EBR	3.6(d)
EBR Balance Sheet	3.6(d)
EBR Business Financial Statements	3.6(d)

Employee Plans	3.10(a)
Equity Financing	4.4(c)
Estimated Carvers Creek Tax Equity Amount	2.3(a)
Estimated Cash	2.3(a)
Estimated Construction Projects Outstanding Obligations Amount	2.3(a)
Estimated Development Projects 2025 Pre-Locked Box Spending Amount	2.3(a)
Estimated Development Projects Adjustment Amount	2.3(a)
Estimated Heller RNG Sale-Leaseback Amount	2.3(a)
Estimated Indebtedness	2.3(a)
Estimated Leakage Amount	2.3(a)
Estimated Locked Box Period Capital Expenditure Amount	2.3(a)
Estimated Net Working Capital	2.3(a)
Estimated Property Tax Amount	2.3(a)
Estimated Specified Funded Indebtedness	2.3(a)
Estimated Transaction Expenses	2.3(a)
Event of Loss	5.29(a)
Excess Credit Support Obligations	5.11(a)
Existing Credit Support Obligations	5.11(a)
FC Adjustment Amount	2.3(i)
FC Construction Projects Outstanding Obligations Amount	2.3(i)
FC Notice of Disagreement	2.3(i)
Final Closing Statement	2.3(b)
Final Completion Statement	2.3(i)
Financing Amounts	4.4(a)
Golden Share	5.9(b)
HSR Act	3.3(b)
Indemnified Party	7.2(a)
Indemnifying Party	7.2(a)
Indemnified Taxes	5.13(b)(vii)
Independent Accounting Firm	2.3(d)
Independent Expert	5.29(b)
Initial Extended Termination Date	8.1(c)
Initial Termination Date	8.1(c)
Insurance Policies	3.12
Interim Development Credit Support Obligation	5.11(b)
Interim Period	5.13(b)(iv)(5)(c)
Intragroup Balances	5.15(a)
Joint Venture	9.7
Lost Profits	5.29(b)
Major Loss	5.29(c)
Mandatory Reporting Rules	5.13(b)(i)
[Redacted – Confidential Information]	5.18(a)
[Redacted – Confidential Information]	5.18(a)
Material Adverse Effect	6.2(a)
Material Contracts	3.18(a)
Net Pre-FC Adjustment Amount	2.3(g)(i)

New Preferred Shares	5.9(a)
Non-Party Affiliate	9.24(a)
Notice of Claim	7.2(e)
Notice of Disagreement	2.3(c)
OFAC	1.1
Other Transaction FERC 203 Application	5.5(h)
Permits	3.8(b)
Potential Contributor	7.3
Power Generation Company	3.20(e)
Pre-Consummation Warning Letter	5.5(i)
Preliminary Closing Statement	2.3(a)
PRH	3.6(e)
PRH Balance Sheet	3.6(e)
PRH Business Financial Statements	3.6(e)
Proceeds	5.29(b)
Project Power	9.7
Property Taxes	5.13(b)(iv)
Purchased Interests	Recitals
Qualified Transferee	3.18(a)(xiii)
Recipient	1.1
Renewable Energy Credit Generator	3.20(e)
Resource Entity	3.20(e)
Restoration Costs	5.29(b)
Retained Names and Marks	5.14(a)
RLWEP	3.6(c)
RLWEP Balance Sheet	3.6(c)
RLWEP Business Financial Statements	3.6(c)
RNG Partnership Flip Documents	5.25(f)
RNG Sale-Leaseback Documents	5.25(e)
Second Extended Termination Date	8.1(c)
Seller	Preamble
Seller Credit Support Cap	5.11(b)
Seller Credit Support Continuing Documents	5.11(b)
Seller Credit Support Obligations	5.11(b)
Seller Parties	5.15(b)
Seller Releasees	9.25(a)
Seller Releasors	9.25(b)
Seller/Company Acquisition Counsel	9.21(a)
Shady Oaks II Tax Equity Documents	5.25(d)
Specified Funded Indebtedness	2.2(b)(ii)
[Redacted – Commercially Sensitive Information – Negotiations with Third Party]	5.18(a)
[Redacted – Commercially Sensitive Information – Negotiations with Third Party]	5.30
Stub Company Partnership Year Ends	5.13(b)(iv)(1)
Subject Employees	3.11(b)
Subsidiary	9.7

Taking	5.29(a)
Tax Audit	5.13(b)(vii)
Tax Equity Company	5.25(c)(iv
Tax Equity Documents	5.25(c)(iv)
Termination Date	8.1(c)
Third Party Claim	7.2(a)
Transfer Taxes	5.13(a)
ULC Conversions	5.1(i)
VWH	3.6(g)
VWH Balance Sheet	3.6(g)

	SELLER:

	ALGONQUIN POWER & UTILITIES CORP.

	By:	/s/ Darren Myers
	Name:	Darren Myers
	Title:	Chief Financial Officer

	By:	/s/ Jennifer Tindale
	Name:	Jennifer Tindale
	Title:	Chief Legal Officer

	BUYER:

	ALTIUS RENEWABLES, ULC

	By:	/s/ Cameron Tajvar
	Name:	Cameron Tajvar
	Title:	Managing Director

Project	Cash allocations between the applicable Tax Equity Investor and the applicable member of the Company Group or Non- Controlled Joint Ventures Group (i)	Class B non- controlling interest percent (ii)	Non-Seller's Interest Percent (iii = i + ii)	Seller’s Interest Percent (100% - iii)
[Redacted – Commercially Sensitive Information]

Project	Cash allocations between the applicable Tax Equity Investor and the applicable member of the Company Group or Non-Controlled Joint Ventures Group (i)	Class B non-controll ing interest percent (ii)	Non-Seller's Interest Percent (iii= i + ii)	Seller’s Interest Percent (100% - iii)
[Redacted – Commercially Sensitive Information]

Project	Cash allocations between the applicable Tax Equity Investor and the applicable member of the Company Group or Non- Controlled Joint Ventures Group (i)	Class B non- controlling interest percent (ii)	Non-Seller's Interest Percent (iii= i + ii)	Seller’s Interest Percent (100% - iii)
[Redacted – Commercially Sensitive Information]

	if to Seller, to:

		Algonquin Power & Utilities Corp.
		354 Davis Road, Suite 100
		Oakville, Ontario
		Canada L6J 2X1
		Attention: Chief Legal Officer
		Email: [Redacted – Personal Information]

		with a copy (which shall not constitute notice) to:

		Gibson, Dunn & Crutcher LLP
		200 Park Avenue
		New York, New York 10166-0193
		Attention: John Gaffney; Daniel S. Alterbaum
		Email: jgaffney@gibsondunn.com; dalterbaum@gibsondunn.com

		and

		Blake, Cassels & Graydon LLP
		199 Bay Street
		Suite 4000, Commerce Court West
		Toronto, Ontario, M5L 1A9
		Attention: John Wilkin; Joe Zed
		Email: john.wilkin@blakes.com; joe.zed@blakes.com

	if to Company, to:



		Attention:

[NAME OF GUARANTOR]
Attn:	[]
Phone:	[]
Fax:	[]
Email:	[]

with a copy to:

[]
Attn:	[]
Phone:	[]
Fax:	[]
Email:	[]

	[NAME OF GUARANTOR],
	as Guarantor

	By:
		Name:
		Title:

	By:
		Name:
		Title:

	CLASS A EQUITY INVESTOR:

	LIBERTY UTILITIES (AMERICA) HOLDINGS LLC


	Name:
	Title:


	Name:
	Title:

	CLASS B EQUITY INVESTOR:

	ALTAVISTA SOLAR INVESTCO 2, LLC

	By: Altavista Solar Investco 1, LLC,
	its Sole Member

	By: Altavista Solar SponsorCo, LLC,
	its Sole Member

	By: Algonquin Power Co.,
	its Administrator


	Name:
	Title:


	Name:
	Title:

	LIBERTY MEMBER:

	LIBERTY UTILITIES (AMERICA) HOLDCO INC.


	Name:
	Title:


	Name:
	Title:

	ALGONQUIN MEMBER:

	ALGONQUIN POWER (NY SOLAR) LLC


	Name:
	Title:


	Name:
	Title:

	ASSIGNOR:

	LIBERTY UTILITIES (AMERICA) HOLDCO INC.

	By:
	Name:
	Title:

	ASSIGNEE:

	ALGONQUIN POWER (MAVERICK CREEK HOLDINGS) INC.

	By:
	Name:
	Title:

ARTICLE I DEFINITIONS		4

Section 1.1	Defined Terms	4

ARTICLE II EARNOUT		13

Section 2.1	Tracking Accounts; Earnout Payments	13

Section 2.2	FMV Appraisal; Exit Event and [Redacted] Project Exit	15

Section 2.3	Covenants	17

Section 2.4	Repowering	19

ARTICLE III REPRESENTATIONS AND WARRANTIES		19

Section 3.1	Mutual Representations and Warranties	19

ARTICLE IV GENERAL PROVISIONS		20

Section 4.1	Termination	20

Section 4.2	Fees and Expenses	20

Section 4.3	Certain Tax Matters	20

Section 4.4	Entire Agreement	20

Section 4.5	Miscellaneous	21

EXHIBITS

Exhibit A	Illustrative Earnout Payment Calculation

Exhibit B	Debt Component

Exhibit C	Overhead Component

Exhibit D	Illustrative Monthly Weighted Average MW Out-of-Service Calculation

Terms	Sections
Agreement	Preamble
APUC Tracking Account	Section 2.1(a)
APUC Tracking Account Balance	Section 2.1(a)
Buyer	Preamble
Closing	Recitals
Company	Recitals
[Redacted – Commercially Sensitive Information – Projects Subject to Earnout]	Section 1.1
Cumulative Cash Tracking Account	Section 2.1(a)
Earnout Parties	Recitals
Earnout Party	Recitals
Earnout Payment	Section 2.1(g)
Earnout Statement	Section 2.1(j)
[Redacted – Commercially Sensitive Information – Projects Subject to Earnout]	Section 1.1
Election Exit Event	Section 2.2(b)
EPS Tracking Account	Section 2.1(a)
EPS Tracking Account Balance	Section 2.1(a)
Exit Date	Section 2.2(b)
Exit Event	Section 2.2(b)
Exit Notice	Section 2.2(b)
Exit Payment	Section 2.2(a)
Intended Tax Treatment	Section 4.3
[Redacted – Commercially Sensitive Information – Projects Subject to Earnout]	Section 1.1
[Redacted – Commercially Sensitive Information – Projects Subject to Earnout]	Recitals
[Redacted – Commercially Sensitive Information – Projects Subject to Earnout]	Recitals
Notice of Disagreement	Section 2.1(k)
Payor Cash Tracking Account	Section 2.1(a)
Project Companies	Section 1.1
Projects	Section 1.1
Purchase Agreement	Recitals
Purchased Interests	Recitals
Seller	Preamble
[Redacted – Commercially Sensitive Information – Projects Subject to Earnout]	Section 1.1
[Redacted – Commercially Sensitive Information – Projects Subject to Earnout]	Recitals
[Redacted – Commercially Sensitive Information – Projects Subject to Earnout]	Section 1.1
Tracking Account	Section 2.1(a)
Tracking Account Balance	Section 2.1(a)
[Redacted – Commercially Sensitive Information – Projects Subject to Earnout]	Recitals
[Redacted – Commercially Sensitive Information – Projects Subject to Earnout]	Section 1.1
[Redacted – Commercially Sensitive Information – Projects Subject to Earnout]	Section 1.1
[Redacted – Commercially Sensitive Information – Projects Subject to Earnout]	Section 1.1
[Redacted – Commercially Sensitive Information – Projects Subject to Earnout]	Recitals
[Redacted – Commercially Sensitive Information – Projects Subject to Earnout]	Section 1.1