DEDHAM, Mass., April 19, 2018
/CNW/ -- Atlantic Power Corporation (NYSE: AT) (TSX: ATP)
("Atlantic Power" or the "Company") announced effective today a
repricing of the $510 million senior
secured term loan ("term loan") and $200
million senior secured revolving credit facility
("revolver") at its APLP Holdings Limited Partnership ("APLP
Holdings") subsidiary, via a group of arranging banks led by
Goldman Sachs Lending Partners LLC. The interest rate margin
on the term loan and revolver was reduced by 50 basis points to
LIBOR plus 300 basis points. The LIBOR floor remains at
1.00%. This repricing is the third for these facilities;
since the original financing in April
2016, the spread has been reduced a total of 200 basis
points, from LIBOR plus 500 basis points to LIBOR plus
300.
The Company is permitted to prepay the term loan in the first
six months following this transaction at a 1% premium.
Following the six-month period, prepayment is permitted at
par. The mandatory 1% annual amortization and cash sweep
provisions of the term loan are unchanged.
As a result of this repricing, the Company expects to realize
interest cost savings in 2018 of approximately $2.1 million, before transaction-related
costs. Cumulative savings through the maturity dates of the
term loan (April 2023) and revolver
(April 2022) are estimated to be
approximately $8.5 million. The
combined savings of the three repricing transactions is expected to
be approximately $41.1 million over
the terms of the facilities.
The Company expects to record fees related to this transaction
in the second quarter of 2018 similar to those recorded on the most
repricing transaction in October 2017.
"We are pleased to have achieved another reduction in the cost
of our term loan and revolver, which will benefit our cash flow
through the maturity dates of both facilities," said Terrence Ronan, Executive Vice President and
Chief Financial Officer of Atlantic Power. "The tighter
spread was the result of continued strong credit market conditions
and our progress to date in reducing our leverage. We expect
to repay another $100 million of debt
in 2018."
About Atlantic Power
Atlantic Power is an independent power producer that owns power
generation assets in nine states in the
United States and two provinces in Canada. The
generation projects sell electricity and steam to investment-grade
utilities and other creditworthy large customers predominantly
under long‑term PPAs that have expiration dates ranging from 2018
to 2037. The Company seeks to minimize its exposure to
commodity prices through provisions in the contracts, fuel supply
agreements and hedging arrangements. The projects are
diversified by geography, fuel type, technology, dispatch profile
and offtaker (customer). The majority of the projects in
operation are 100% owned and directly operated and maintained by
the Company. The Company has expertise in operating most fuel
types, including gas, hydro, and biomass, and it owns a 40%
interest in one coal project.
Atlantic Power's shares trade on the New York Stock Exchange
under the symbol AT and on the Toronto Stock Exchange under the
symbol ATP. For more information, please visit the Company's
website at www.atlanticpower.com or contact:
Atlantic Power Corporation
Investor Relations
(617) 977-2700
info@atlanticpower.com
Copies of the Company's financial data and other publicly filed
documents are available on SEDAR at www.sedar.com or on EDGAR at
www.sec.gov/edgar.shtml under "Atlantic Power Corporation" or on
the Company's website.
Cautionary Note Regarding Forward-Looking Statements
To the extent any statements made in this news release contain
information that is not historical, these statements are
forward-looking statements within the meaning of Section 27A of the
U.S. Securities Act of 1933, as amended, and Section 21E of the
U.S. Securities Exchange Act of 1934, as amended, and under
Canadian securities law (collectively, "forward-looking
statements").
Certain statements in this news release may constitute
"forward-looking statements", which reflect the expectations of
management regarding the future growth, results of operations,
performance and business prospects and opportunities of the Company
and its projects. These statements, which are based on
certain assumptions and describe the Company's future plans,
strategies and expectations, can generally be identified by the use
of the words "may," "will," "project," "continue," "believe,"
"intend," "anticipate," "expect" or similar expressions that are
predictions of or indicate future events or trends and which do not
relate solely to present or historical matters. Examples of
such statements in this press release include, but are not limited,
to statements with respect to the following:
- the Company's estimates of interest cost savings resulting from
the reduction in the spread on its term loan and revolver;
- the Company's expectation that these interest cost savings will
benefit its cash flow through the maturity dates of the facilities;
and
- the Company's plan to repay approximately $100 million of debt in 2018.
Forward-looking statements involve significant risks and
uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate
indications of whether or not or the times at or by which such
performance or results will be achieved. Please refer to the
factors discussed under "Risk Factors" and "Forward-Looking
Information" in the Company's periodic reports as filed with the
U.S. Securities and Exchange Commission (the "SEC") from time to
time for a detailed discussion of the risks and uncertainties
affecting the Company. Although the forward-looking
statements contained in this news release are based upon what are
believed to be reasonable assumptions, investors cannot be assured
that actual results will be consistent with these forward-looking
statements, and the differences may be material. These
forward-looking statements are made as of the date of this news
release and, except as expressly required by applicable law, the
Company assumes no obligation to update or revise them to reflect
new events or circumstances.
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SOURCE Atlantic Power Corporation