On October 13, 2009, EPCOR Power L.P. announced a change in distribution frequency to monthly from quarterly and the launch of a Premium Distribution™ and Distribution Reinvestment Plan (the “Plan”) that provides eligible unitholders with two alternatives to receiving the monthly cash distributions. The Plan has been designed to enhance the value unitholders receive from their investment in the Partnership.
The change to a monthly distribution will become effective immediately and replaces quarterly cash distributions that would otherwise be made. With the change to monthly distributions, cash distributions of the Partnership for periods commencing after September 30, 2009 will be made in respect of each calendar month instead of the quarters ending March, June, September and December of each year. The annual distributions are expected to remain at $1.76, in keeping with the Partnership’s target of a long term payout ratio of approximately 75% of cash provided by operating activities less maintenance capital.
Under the Plan, eligible Unitholders may elect to either:
- Efficiently and cost-effectively accumulate additional units in the Partnership by reinvesting cash distributions in additional units issued at a 5% discount to the Average Market Price of such units (as defined in the Plan) on the applicable distribution payment date; or
- Receive an additional 2% premium on their cash distributions, resulting in a monthly cash distribution equivalent to 102% of the Partnership’s monthly cash distribution.
Participation in the Plan is optional. Eligible unitholders who wish to participate in the Plan must provide enrolment instructions to the broker, investment dealer, financial institution or other nominee through which they hold their units, and should consult such nominee as to the deadline for doing so. Participation in the Premium Distribution™ component of the Plan will initially be limited to 20% of the monthly distribution and the Partnership reserves the right to change or re-evaluate and change this limit from time-to-time.
A complete copy of the Plan and a related series of Questions and Answers are available below under "Additional Information", or from the Plan Agent at http://www.computershare.com/ or by calling toll free (866) 896-4636. Unitholders should carefully read the complete text of the Plan before making any decisions regarding their participation in the Plan.
Additional Information