Prospectus excerpt: This Prospectus Supplement qualifies the distribution (the "Offering") of 6,000,000 Cumulative Rate Reset Preference Shares, Series 3 (the "Series 3 Shares") of Capital Power Corporation (the "Corporation" and together with its subsidiaries, "Capital Power") at a price of $25.00 per Series 3 Share. See "Details of the Offering" and "Plan of Distribution".
The holders of the Series 3 Shares will be entitled to receive fixed cumulative preferential cash dividends, if, as and when declared by the board of directors of the Corporation (the "Board of Directors"), payable quarterly on the last business day of each of March, June, September and December at an annual rate of $1.15 per Series 3 Share for the initial period from and including the Closing Date (as defined herein) to but excluding December 31, 2018 (the "Initial Fixed Rate Period"). The initial dividend, if declared, will be payable on March 28, 2013 and will be $0.3151 per Series 3 Share, based on the anticipated closing of this Offering on December 18, 2012.
For each five?year period after the Initial Fixed Rate Period (each, a "Subsequent Fixed Rate Period"), the holders of the Series 3 Shares will be entitled to receive fixed cumulative preferential cash dividends, if, as and when declared by the Board of Directors, payable quarterly on the last business day of each of March, June, September and December at the Annual Fixed Dividend Rate (as defined herein). The Corporation will determine on the 30th day prior to the first day of a Subsequent Fixed Rate Period, the annual fixed dividend rate applicable to that Subsequent Fixed Rate Period (the "Annual Fixed Dividend Rate"). Written notice of the Annual Fixed Dividend Rate for the upcoming Subsequent Fixed Rate Period will be provided by the Corporation to the registered holders on the 30th day prior to the first day of a Subsequent Fixed Rate Period. The Annual Fixed Dividend Rate will be equal to the sum of the 5?Year Government of Canada Bond Yield (as defined herein) on the 30th day prior to the first day of a Subsequent Fixed Rate Period plus 3.23%. See “Details of the Offering”.