Northland Power Closes $240 Million in Financing to Build Five 10MW Solar
Projects in Ontario
TORONTO, ONTARIO -- (Marketwired) -- 04/24/14 -- Northland Power
Inc. ("Northland") (TSX: NPI)(TSX: NPI.PR.A)(TSX: NPI.PR.C)(TSX:
NPI.DB.A)(TSX: NPI.DB.B) announced today that it has completed
financing for the fourth and last phase of its 130 MW ground-mount
program. The five solar projects, totaling 50 MW, are located in
various communities in northern and central Ontario. The financing
process was managed by The Bank of Tokyo Mitsubishi UFJ, Ltd., Mizuho
Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation,
Nordeutsche Landesbank and Siemens Financial Ltd. as Lead Arrangers,
and included Raymond James Ltd., CIT Financial Ltd, and Laurentian
Bank of Canada. The facilities consist of a $240 million construction
credit facility with an 18-year term loan.
"Renewable energy sources such as solar are a rapidly growing portion
of Ontario's energy mix," said John Brace, CEO of Northland. "As we
expand our portfolio of solar assets across the province, we look
forward to delivering strong returns to shareholders while producing
clean, renewable energy that contributes to the long-term
sustainability of our electricity system and environment."
"MUFG is pleased to work with Northland Power arranging this
important transaction. The deal's success reflects the company's vast
experience and recognition by lenders that Northland is a premier
developer in Canada," said Carmelo Restifo, director at MUFG. "This
is the fourth non-recourse solar financing MUFG has successfully
executed for Northland. Solar IV is one of the largest widely
syndicated Construction plus 18-year term loan bank deals completed
in North America for a solar project transaction."
Under construction by H.B. White Canada Corp., a wholly-owned
subsidiary of White Construction Inc., the solar projects will sell
the electricity under Ontario's renewable energy Feed-in-Tariff (FIT)
program, and are using Ontario-made equipment and local Ontario
labour. The projects are located near Cochrane in Northern Ontario,
and Burk's Falls near Huntsville. Commercial operations are expected
to begin throughout 2014 and the first half of 2015.
To date, Northland has raised over $900 million in capital to fund
renewable energy project development across Ontario. A commitment to
producing clean and green energy has driven the company's strategy
for over 25 years. As one of Ontario's first independent power
producers, Northland developed its Kirkland Lake and Cochrane thermal
facilities in the late 1980s and early 1990s to address the local
forestry industry's waste wood issues.
In total, Northland has received 130 MW of FIT contracts for
ground-mounted solar projects. Eight projects have already achieved
Northland is an independent power producer founded in 1987, and
publicly traded since 1997. Northland develops, builds, owns and
operates facilities that produce 'clean' (natural gas) and 'green'
(wind, solar, and hydro) energy, providing sustainable long-term
value to shareholders, stakeholders, and host communities.
The company owns or has a net economic interest in 1,349 MW of
operating generating capacity, with an additional 110 MW (80 MW net
to Northland) of generating capacity currently in construction, and
another 150 MW (79 MW net to Northland) of wind and run-of-river
hydro projects with awarded power contracts. In addition, Northland
has acquired the rights to a majority equity stake in Gemini, a 600
MW off-shore wind project under development off the coast of the
Netherlands in the North Sea. Northland's cash flows are diversified
over five geographically separate regions and regulatory
jurisdictions in Canada, Europe and the United States.
Northland's common shares, Series 1 and Series 3 preferred shares and
convertible debentures trade on the Toronto Stock Exchange under the
symbols NPI, NPI.PR.A, NPI.PR.C, NPI.DB.A and NPI.DB.B, respectively.
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