-- $52.8M non-recourse project financing
-- Principal amortized over a term of approximately 14 years
-- Fixed interest rate of 5.6%
LONGUEUIL, QC, June 26, 2013 /CNW Telbec/ - Innergex Renewable Energy Inc.
(TSX:INE) ("Innergex" or the "Corporation") has closed a $52.8 million
non-recourse term loan to refinance its ownership portion of the Carleton wind
farm located on the Gaspé Peninsula in Quebec, Canada.
"We are very pleased with the success of this project-debt refinancing, which
provides for fixed-rate debt at a very attractive rate", states Michel
Letellier, President and Chief Executive Officer of the Corporation. "In
addition, the refinancing and higher loan amount with the same lenders serves
as a testament to Innergex's expertise in wind energy development", adds Mr.
The $52.8 million term loan carries a fixed interest rate of 5.6% (through the
use of swaps) and the principal will be amortized over a term of approximately
14 years, slightly less than the remaining duration of the wind farm's first
power purchase agreement. Proceeds will be used to reimburse the initial
project financing, which has a remaining balance of $41.1million and a term
of November 2013. The remaining proceeds of approximately $11.7million will
be used essentially to reduce drawdowns on the Corporation's revolving term
credit facility. The higher refinancing amount results from the wind farm
performing better than initially expected by the lenders. The new financing,
as well as the swap agreement to fix the interest rate, have been provided by
the same two lenders as for the initial financing, namely Sumitomo Mitsui
Banking Corporation and Bank of Tokyo Mitsubishi UFJ Canada.
The Carleton wind farm, in which Innergex owns a 38% interest and a 50%
management stake through its Cartier Wind Energy joint venture, comprises 73
wind turbines with a total installed capacity of 109.5 MW and an estimated
average annual production of 340,523 MWh, enough to power more than 20,000
Quebec homes each year. It was commissioned in November 2008 and all of the
electricity produced is sold to Hydro-Quebec under a fixed-price power
purchase agreement, which provides for an annual adjustment to the selling
price based on a portion of the Consumer Price Index, and which expires in
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 eight
projects under development or under construction with an aggregate net
installed capacity of 265MW (gross 413MW), 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 average annual production.
The forward-looking information is based on certain key expectations and
assumptions made by Innergex as of the date of this press release, including
performance of the wind farm, 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.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 email@example.com
SOURCE: INNERGEX RENEWABLE ENERGY INC.
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