Innergex announces the closing of the Viger-Denonville wind project financing
-- $61.7M non-recourse project financing
-- 18-year term, closely matching the duration of the project's
power purchase agreement
-- Fixed interest rate of 6.0%
LONGUEUIL, QC, Aug. 7, 2013 /CNW Telbec/ - Innergex Renewable Energy Inc.
(TSX:INE) ("Innergex" or the "Corporation") announces that Parc éolien
communautaire Viger-Denonville, s.e.c. has closed a $61.7 million non-recourse
construction and term project financing for the Viger-Denonville wind energy
project located in Quebec, Canada.
"As manager and co-owner of the Viger-Denonville project, we are satisfied
with the terms of this financing agreement, and we are especially pleased to
have concluded this agreement with a new financial partner, widening our
banking relationships", states Michel Letellier, President and Chief Executive
Officer of the Corporation. "It once again confirms the Corporation's ability
to secure appropriate project financing and diversify its sources of capital",
adds Mr. Letellier.
The $61.7million construction loan will carry a fixed interest rate of 6.0%
(through the use of swaps) starting on December 31, 2013; following the start
of the project's commercial operation, it will convert into an 18-year term
loan. Parc éolien communautaire Viger-Denonville, s.e.c. has also closed a
short-term loan of $5.5million carrying a floating interest rate, to finance
the construction of the substation and collector system, for which it is
entitled to be reimbursed by Hydro-Québec in 2014. These loans have been
arranged by KfW IPEX-Bank GmbH as agent and lender.
Developed by Parc éolien communautaire Viger-Denonville, s.e.c., a 50-50
joint venture between the Corporation and the Rivière-du-Loup Regional County
Municipality, the 24.6MW Viger-Denonville wind energy project is located
entirely on private lands in the Quebec municipalities of
Saint-Paul-de-la-Croix and Saint-Épiphane. Construction began in the spring
of 2013 and commercial operation is expected to begin in the fourth quarter of
2013. The project's average annual production is estimated to reach
67,600MWh, enough to power approximately 4,000Quebec households each year.
All of the electricity it will produce will be covered by a 20-year
fixed-price power purchase agreement with Hydro-Québec, which was obtained
under that province's 2009 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 just over 80%
of the total project costs.
Concurrent with the closing of the financing, Parc éolien communautaire
Viger-Denonville, s.e.c. has settled the bond forward contracts used to hedge
the interest rate on the debt and therefore protect the expected returns on
the project, giving rise to a realized gain on derivative financial
instruments of approximately $2.2million, which is equivalent to a fixed
interest rate of approximately 5.5% on the loan.
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 29 operating facilities with an aggregate net installed capacity
of 617MW (gross 1,072MW), including 23 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 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
Viger-Denonville 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, 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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-0- Aug/07/2013 17:21 GMT
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