Innergex Closes Northwest Stave River Hydroelectric Project Financing
-- $72M non-recourse project financing
-- 40-year term, matching the duration of the project's power
-- Fixed interest rate of 5.3%
LONGUEUIL, QC, May 23, 2013 /CNW Telbec/ - Innergex Renewable Energy Inc.
(TSX:INE) ("Innergex" or the "Corporation") has closed a $72 million
non-recourse construction and term project financing for the Northwest Stave
River run-of-river hydroelectric project located in British Columbia, Canada.
"We are very satisfied with the terms of this financing agreement, which
provides for fixed-rate debt at a very attractive rate, with a term
corresponding to the duration of the power purchase agreement for this
project" states Michel Letellier, President and Chief Executive Officer of the
Corporation. "This agreement confirms the Corporation's ability to secure
appropriate project financing, and serves as a reminder of its sound business
model based on developing high-quality assets that generate stable and
predictable cash flows over the long term and minimizing risks, in order to
create value for its shareholders", adds Mr. Letellier.
The $72 million construction loan will carry a fixed interest rate of 5.3%;
upon the start of the project's commercial operation, it will convert into a
40-year term loan and the principal will begin to be amortized over a 35-year
period, starting in the sixth year. The financing has been arranged by
Industrial Alliance Insurance and Financial Services Inc. as agent and lead
lender, and includes Stonebridge Infrastructure Debt Fund I L.P. as lender.
The 17.5MW Northwest Stave River hydroelectric project is located on Crown
land, approximately 35km north of Mission, British Columbia. Construction
began in 2011 and commercial operation is expected to begin in the fourth
quarter of 2013. Northwest Stave's average annual production is estimated to
reach 61,900MWh, enough to power approximately 6,000BC households. All of
the electricity it will produce will be covered by a 40-year fixed-price power
purchase agreement with BC Hydro, which was obtained under that province's
2008 Clean Power Call Request for Proposals and which provides for an annual
adjustment to the selling price based on a portion of the Consumer Price
Index. The proceeds of the financing will be used to fund approximately 80% of
the total project costs.
About Innergex Renewable Energy Inc.
Innergex Renewable Energy Inc. (TSX: INE) is a leading Canadian independent
renewable power producer. Active since 1990, the Company develops, owns, and
operates run-of-river hydroelectric facilities, wind farms, and solar
photovoltaic farms and carries out its operations in Quebec, Ontario, British
Columbia, and Idaho, USA. Its portfolio of assets currently consists of: (i)
interests in 28 operating facilities with an aggregate net installed capacity
of 577MW (gross 1,031MW), including 22 hydroelectric operating facilities,
five wind farms, and one solar photovoltaic farm; (ii) interests in seven
projects under development or under construction with an aggregate net
installed capacity of 190MW (gross 263MW), for which power purchase
agreements have been secured; and (iii) prospective projects with an aggregate
net capacity totaling 2,900 MW (gross 3,125MW). Innergex Renewable Energy
Inc. is rated BBB- by S&P and BB (high) by DBRS (unsolicited rating).
The Corporation's strategy for building shareholder value is to develop or
acquire high-quality facilities generating sustainable cash flows and
providing a high return on invested capital, and to distribute a stable
Forward-Looking Information Disclaimer
This press release contains forward-looking information within the meaning of
securities legislation. All information and statements other than statements
of historical facts contained in this press release are forward-looking
information. Such statements and information may be identified by looking for
words such as "about", "approximately", "may", "believes", "expects", "will",
"intend", "should", "plan", "predict", "potential", "project", "anticipate",
"estimate", "continue" or similar words or the negative thereof or other
comparable terminology. Such forward-looking information includes, without
limitation, statements with respect to construction costs, commercial
operation date, and average annual production.
The forward-looking information includes forward-looking financial information
or financial outlook, such as the estimated construction costs and electricity
production, to inform investors of the potential financial impact of the
Northwest Stave River project on the Corporation's results. Such information
may not be appropriate for other purposes.
The forward-looking information is based on certain key expectations and
assumptions made by Innergex as of the date of this press release, including
expectations and assumptions concerning construction costs, commercial
operation date, performance of the facility, as well as estimates, forecasts,
and opinions of the Corporation. Although Innergex believes that the
expectations and assumptions on which such forward-looking information is
based are reasonable, undue reliance should not be placed on the
forward-looking information since no assurance can be given that they will
prove to be correct. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These include, but
are not limited to, design, development, and construction of the new facility,
performance of third-party suppliers, securing project financing, and other
risks generally attributable to the business of Innergex.For additional
information with respect to risks and uncertainties, refer to the Annual
Information Form of Innergex filed on SEDAR's website at www.sedar.com. The
forward-looking information contained herein is made as of the date of this
press release and the Corporation does not undertake any obligation to update
or revise any forward-looking information, whether as a result of events or
circumstances occurring after the date hereof, unless required by legislation.
Marie-Josée Privyk, CFA, SIPC Director - Investor Relations 450-928-2550,
ext. 222 firstname.lastname@example.org
SOURCE: INNERGEX RENEWABLE ENERGY INC.
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CO: INNERGEX RENEWABLE ENERGY INC.
ST: British Columbia
NI: UTI CST LOAN MNA ORDER
-0- May/23/2013 12:55 GMT
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