VANCOUVER, Aug. 13, 2014 /CNW/ - Alterra Power Corp. (TSX: AXY) announces it
has closed a C$110 million loan facility with affiliates of AMP Capital
Proceeds from the loan facility will be received in up to three tranches:
1. Tranche A totaling C$67.3 million on or before August 15, 2014.
2. Tranche B totaling C$21.5 million at or after the closing of
construction financing for the 62 MW Jimmie Creek hydro project,
subject to certain agreed conditions precedent.
3. Tranche C totaling C$21.2 million at or after the closing of
construction financing for the 204 MW Shannon wind project,
subject to certain agreed conditions precedent.
Proceeds from the facility will be used to pay development and construction
costs and sponsor equity contributions for the Jimmie Creek and Shannon
projects (which had been temporarily funded by Alterra's revolving credit
facility) and for other general corporate purposes.
Tranche A of the loan will be secured by Alterra's interests in the Toba
Montrose and Dokie 1 projects (subject to senior secured project debt) and
supported solely by equity distributions from these projects, which will be
held in a wholly-owned subsidiary of Alterra. Upon closing of Tranches B and
C, the cash flows from Jimmie Creek and Shannon, respectively, will also
support the facility.
The loan facility will mature on February 5, 2023, and has no scheduled
payments of principal prior to maturity. The loan facility has no equity or
equity-related components. Loan pricing is approximately 8.0% per annum based
on current market rates. Alterra is currently in discussions with several
parties to swap the floating rate loan obligations for fixed-rate obligations.
John Carson, Alterra's Chief Executive Officer, said "This financing is built
on the strong value of Alterra's clean power projects, and will take Alterra
into its next growth phase. The facility will provide us with enough capital
to fund our ownership equity for the Jimmie Creek and Shannon projects, and
will seed our next growth projects as well. We are very pleased to be funding
these projects with competitively-priced debt capital, and with no equity
About Alterra Power Corp.
Alterra Power Corp. is a leading global renewable energy company, operating
six power plants totaling 568 MW of generation capacity, including British
Columbia's largest run-of-river hydro facility and largest wind farm, two
geothermal facilities in Iceland, and a geothermal plant in Nevada. Alterra
owns a 262 MW share of this capacity, generating approximately 1,300 GWh of
clean power annually. Alterra has an extensive portfolio of exploration and
development projects and a skilled international team of developers,
explorers, builders and operators to support its growth plans.
The company trades on the Toronto Stock Exchange under the symbol AXY and OTC
in the United States as MGMXF.
Cautionary Note Regarding Forward-Looking Information
Certain statements and information included in this news release are
"forward-looking information" within the meaning of Canadian securities laws
that involve risks and uncertainties. Forward-looking information relates to
future events or future performance and reflects management's expectations and
beliefs regarding future events as of the date hereof. Examples of
forward-looking information in this news release include the use of proceeds,
the timing of the potential funding of the loan tranches, and the ability of
Alterra or its affiliates to satisfy conditions precedent to funding
subsequent tranches of the loan facility. Forward-looking information is based
on factors or assumptions that were applied in drawing a conclusion or making
a forecast or projection, including assumptions based on historical trends,
current conditions and expected future developments. Since forward-looking
information relates to future events and conditions, by its very nature it
requires making assumptions and involves inherent risks and uncertainties.
Alterra cautions that although it is believed that the assumptions are
reasonable in the circumstances, these risks and uncertainties give rise to
the possibility that actual results may differ materially from the
expectations set out in the forward-looking information. Material risk factors
and assumptions include those set out in the management's discussion and
analysis section of Alterra's most recent annual and quarterly reports and in
Alterra's Annual Information Form for the year ended December 31, 2013.
Although Alterra has attempted to identify important factors that could cause
actual actions, events or results to differ materially from forward-looking
information, there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no assurance
that forward-looking information will prove to be accurate and undue reliance
should not be placed on forward-looking information. Except as required by
law, Alterra undertakes no obligation to update any forward-looking
information to reflect new information, subsequent or otherwise.
SOURCE Alterra Power Corp.
Peter Lekich, Corporate Communications Alterra Power Corp. Phone: 604.235.6719
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CO: Alterra Power Corp.
ST: British Columbia
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-0- Aug/13/2014 13:05 GMT
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