Northland Power Closes $240 Million in Financing to Build Five 10MW Solar Projects in Ontario
April 24 2014 - 6:36PM
Marketwired
Northland Power Closes $240 Million in Financing to Build Five 10MW
Solar Projects in Ontario
TORONTO, ONTARIO--(Marketwired - Apr 24, 2014) - 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
commercial operation.
ABOUT NORTHLAND
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.
Sarah CharukDirector,
Communications647-288-1105Sarah.Charuk@northlandpower.ca
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