Liberty Utilities raises $1.15B in senior notes for debt refinancing
Liberty Utilities Co. has priced a new offering of senior notes totalling $1.15 billion. The company, a subsidiary of Algonquin Power & Utilities Corp. (AQN), will issue two sets of notes with different maturity dates. The funds raised will be used to refinance existing debt and support internal lending. The offering includes $650 million of 5.100% senior notes due on May 15, 2031, and $500 million of 5.650% senior notes due on May 15, 2036. The 2031 notes were priced at 99.991% of their face value, while the 2036 notes were priced at 99.676%. Both sets of notes are unsecured and rank equally with Liberty Utilities’ other unsecured debts.
The notes will be sold in a private placement to qualified institutional buyers and to non-U.S. investors outside the United States. AQN will not act as a guarantor or obligor for these notes. Once the sale closes, Liberty Utilities plans to repay an intercompany loan from AQN and provide a loan to Liberty Utilities (America) Co.
The offering is expected to finalise on May 15, 2026, subject to standard closing conditions. After completion, Liberty Utilities will terminate its $1.15 billion senior unsecured syndicated delayed draw term facility. AQN, meanwhile, will use the proceeds to refinance its $1.15 billion of 5.365% notes due in 2026 and cover related fees. The transaction will allow Liberty Utilities to restructure its debt while AQN retires its existing 2026 notes. The notes will remain unsubordinated obligations of Liberty Utilities, with no direct backing from AQN. The deal is set to close next year, pending final approvals.
