Alterra Power Completes $110 Million Holding Company Financing

        Alterra Power Completes $110 Million Holding Company Financing

PR Newswire

VANCOUVER, Aug. 13, 2014

VANCOUVER, Aug. 13, 2014 /PRNewswire/ - Alterra Power Corp. (TSX: AXY)
announces it has closed a C$110 million loan facility with affiliates of AMP
Capital Investors Limited.

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
issuance."

About Alterra Power Corp.

Alterra Power Corp.is a leading global renewable energy company, operating
six power plants totaling 568 MW of generation capacity, includingBritish
Columbia'slargest run-of-river hydro facility and largest wind farm, two
geothermal facilities in Iceland, and a geothermal plant inNevada. 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.

Contact:

Peter Lekich, Corporate Communications
Alterra Power Corp.
Phone: 604.235.6719
Email:info@alterrapower.ca
 
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