FAQs

What is infrastructure?

Infrastructure is an essential part of any modern community, providing the underlying foundation of basic services, facilities and institutions. Infrastructure assets include roads and highways, bridges, power generation facilities, electricity transmission and distribution systems, water distribution, hospitals, schools, sea ports and airports.

MPIC focuses on the regulated or contractually-defined infrastructure assets presented in the highlighted categories below, which are typically lower risk and generate stable cash flow.

What are MPIC's investment objectives?

MPIC's mission is to build and responsibly manage a high quality porfolio of core infrastructure businesses in Canada and internationally in order to deliver a superior total return to our investors through stable dividends and capital appreciation. This could include operating infrastructure businesses as well as selective development or growth projects across a range of core infrastructure categories, including power infrastructure.

What are MPIC's assets?

Our portfolio currently includes gas cogeneration, wind, hydro and biomass power generation facilities, representing approximately 350 MW of installed capacity. We are also currently developing a 20 MW solar power facility in Ontario and have entered into an agreement to acquire a 33.3 per cent interest in a portfolio of district heating businesses in Sweden. 

How is MPIC structured?

MPIC is incorporated in the Province of British Columbia. MPIC is the successor of Macquarie Power & Infrastructure Income Fund.

Who manages MPIC?

MPIC is managed by Macquarie Power Management Ltd. (MPML). MPML is a member of the Macquarie group, one of the world’s largest and most experienced managers of infrastructure with approximately $38 billion in equity under management in infrastructure and adjacent sectors in 25 countries.

What is MPIC's governance structure?

MPIC is governed by a five-person Board of Directors composed of:

• Derek Brown, Independent Director, Chairman
• Patrick J. Lavelle, Independent Director
• Stephen Mentzines, Manager-appointed Director
• François R. Roy, Independent Director
• V. James Sardo, Independent Director

More information about MPIC's governance structure is available in the Governance section of our website.

How can I invest in MPIC?

MPIC's common shares are listed on the Toronto Stock Exchange under the symbol MPT. MPIC's common shares can be purchased through any Canadian brokerage firm authorized to deal in Canadian securities. MPIC's convertible debentures are listed on the Toronto Stock Exchange under the symbol MPT.DB.A.

How many common shares does MPIC have outstanding?

MPIC currently has approximately 59.6 million common shares outstanding, including approximately 3.2 million Class B exchangeable limited partnership units of a subsidiary entity of MPIC.

When is MPIC's year end?

Our fiscal year end is December 31.

How do I contact MPIC's transfer agent?

Our common share transfer agent and registrar is Computershare Investor Services Inc. Computershare’s toll-free number if calling within Canada or the United States is +1 (800) 564-6253. The international phone number is +1 (514) 982-7555.

All correspondence can be sent to:

Computershare Investor Services Inc.
1500 University Street, Suite 700
Montreal, Quebec H3A 3S9
Canada

How do I contact MPIC's management?

Macquarie Power Management Ltd. can be reached by:

Mail	Macquarie Power Management Ltd. Brookfield Place 181 Bay Street, Suite 3100 Toronto, Ontario M5J 2T3
Telephone	+1 (416) 607-5009
Fax	+1 (416) 607-5073
Email	mpic@macquarie.com

When are dividends paid on common shares?

MPIC pays monthly cash dividends on its common shares. Dividends are declared each month, approximately eight business days prior to the last business day of the month. Common shareholders of record on the last business day of that month are entitled to the dividend. The declared dividends are paid out on the 15th or next closest business day of the following month.

Example

Dividend Month	Record Date	Payable Date
January 2011	January 31, 2011	February 15, 2011

What is MPIC's dividend policy?

MPIC's policy is currently set at $0.055 per common share per month. This dividend profile is expected to be sustainable through 2014 based on MPIC's current operations and outlook and barring any significant unexpected events.

Is there a dividend reinvestment policy (DRIP)?

Yes. More information is available in the DRIP section of this website.

Do you target a specific payout ratio?

We seek to maintain a prudent payout ratio.

For 2011, we expect our payout ratio to be approximately 100 per cent, which reflects the impact of a higher than anticipated TCPL interim gas transportation toll of $2.24 per GJ for 2011 compared with $1.64 per GJ in 2010, which results in higher operating expenses at the Cardinal facility.   Gas transportation tolls are expected to return to a more reasonable level for 2012 and in future years as TCPL seeks to reach a new settlement agreement with shippers and other industry participants.

When does MPIC expect to pay cash taxes?

We currently expect to be able to defer tax at the corporate level at least until 2015 based on our current portfolio.

Does MPIC have any refinancing requirements coming up?

Our goal is to match the cash flow profile of our assets and the life of our power purchase agreements (PPAs) with investment-grade debt, which helps to minimize financial risk.

As at September 30, 2010, MPIC's long-term debt of approximately $273.6 million included:

• $85 million on our credit facility, which matures in June 2012;
• Approximately $107.9 million in project debt for Erie Shores in three tranches that mature between 2011 and 2026, respectively;
• $57.5 million outstanding on its convertible debentures, which mature in December 2016. Since September 30, 2010, approximately $4.3 million of the principal amount outstanding has been converted by holders of the debentures into common shares of MPIC; and 
• About $23.2 million in levelization accounts related to the hydro power facilities.

What is MPIC's financial position?

MPIC's financial position is strong. As at September 30, 2010, unrestricted cash on hand totalled $51.5 million, and the major maintenance, capital expenditure and general reserve accounts were fully funded in the amount of $11.9 million.

What kinds of growth opportunities is MPIC looking for?

We have been highly active in exploring growth opportunities over the past year, evaluating a significant number of potential transactions in Canada, the United States and internationally in OECD countries, including hydro, wind, solar, gas cogeneration, biomass and geothermal power generation opportunities as well as an airport, toll roads, utilities and public-private partnership (P3) projects, including both development projects and operating assets.  We are currently continuing to look at numerous opportunities with the aim of further diversifying our portfolio, enhancing the reliability of our long-term cash flow and delivering a superior total return to our investors.