- Increases Innergex's net capacity by 366 MW
- 49 employees to join Innergex's team of
experts
- Closing of the short-term financings related to the
acquisition
LONGUEUIL, QC,
Oct. 24, 2018 /CNW
Telbec/ - Innergex Renewable Energy Inc. (TSX: INE) ("Innergex" or
the "Corporation") is pleased to announce the completion of the
previously disclosed acquisition of TransCanada's 62% interest in
five wind farms in the Gaspé peninsula in Quebec known as Baie-des-Sables, Carleton, Gros-Morne, L'Anse-à-Valleau and
Montagne Sèche (the "Cartier Wind Farms"), as well as its 50%
interest in the operating entities of the Cartier Wind Farms (the
"Cartier Operating Entities"), for a total consideration of
approximately $620 million after
adjustment for distributions received by TransCanada since
July 1, 2018 (the "Transaction").
Innergex already owned the remaining interests in both Cartier Wind
Farms and Cartier Operating Entities.
"I am pleased to announce we have finalized the
acquisition of Cartier Wind Farms and Cartier Operating Entities.
We have always considered these assets as an integral part of our
family, Baie-des-Sables being the
first of many wind farms introduced to our portfolio of assets. By
leveraging the expertise and knowledge of Cartier staff, we will continue to improve our
wind operations and pursue our growth strategy," said Michel Letellier, President and Chief Executive
Officer of Innergex. "Our discussions with financial institutions
to put in place a non-recourse long-term financing at the projects
level look promising and could be above the $400 million that we first expected to obtain. We
anticipate closing this financing in the coming months."
Concurrent with the closing of the acquisition, Innergex
has obtained two short-term credit facilities to cover the purchase
price and transaction costs in its entirety.
Innergex has obtained a one-year term non-recourse credit
facility of $400 million, which the
Corporation intends to repay from the proceeds of a non-recourse
long-term financing at projects level based on the useful life of
the assets. Discussions with long-term lenders are at an advanced
stage and closing of the non-recourse long-term financing of the
projects is expected in the coming months.
Innergex has also obtained a one-year term credit facility
of $228 million to be reimbursed
through the strategic divestment of selected assets which would be
optimal for the long-term performance and outlook of the
Corporation. Management believes there are a number of attractive,
actionable opportunities to monetize selected assets or portions of
existing assets in a manner that supports Innergex's long-term
strategy. The Corporation will diligently investigate these various
options to derive maximum value from its portfolio of assets. The
timing of such sales is subject to prevailing market conditions but
are expected to be completed within a year.
About Innergex Renewable Energy
Inc.
The Corporation is an independent
renewable power producer which develops, acquires, owns and
operates hydroelectric facilities, wind farms, solar farms and
geothermal power generation plants. As a global corporation,
Innergex conducts operations in Canada, the United
States, France,
Chile and Iceland. Innergex manages a large portfolio of
assets currently consisting of interests in 68 operating facilities
with an aggregate net installed capacity of 2,091 MW (gross
3,072 MW), including 37 hydroelectric facilities, 25 wind
farms, four solar farms and two geothermal facilities. Innergex
also holds interests in five projects under development with a net
installed capacity of 719 MW (gross 800 MW), two of which are
currently under construction and prospective projects at different
stages of development with an aggregate net capacity totaling 8,382
MW (gross 9,246 MW). Respecting the environment and balancing the
best interests of the host communities, its partners, and its
investors are at the heart of the Corporation's development. Its
strategy for building shareholder value is to generate sustainable
cash flows, provide an attractive risk-adjusted return on invested
capital and to distribute a stable dividend. Innergex Renewable
Energy Inc. is rated BBB- by S&P.
Forward-Looking Information
Disclaimer
To inform readers of the
Corporation's future prospects, this press release contains
forward-looking information within the meaning of applicable
securities laws, including, but not limited to, sources and impact
of funding of the Transaction (including the consummation and
timing of the potential divestiture of selected assets and
execution of non-recourse project level financing (including the
timing and amount thereof), and strategic, operational and
financial benefits and accretion expected to result from the
Transaction, that the Corporation will be able to successfully
execute its strategy of repaying the short-term financing as
described herein, Innergex's power production, business strategy,
future development and growth prospects, business integration,
governance, business outlook, objectives, plans and strategic
priorities, and other statements that are not historical facts
("Forward-Looking Information"). Forward-Looking Information can
generally be identified by the use of words such as
"approximately", "may", "will", "could", "believes", "expects",
"intends", "should", "plans", "potential", "project",
"anticipates", "estimates", "scheduled" or "forecasts", or other
comparable terminology that state that certain events will or will
not occur. It represents the projections and expectations of the
Corporation relating to future events or results as of the date of
this press release.
Forward-looking statements are based on certain key
expectations and assumptions made by Innergex, including
expectations and assumptions concerning availability of capital
resources; economic and financial conditions; project performance
and the timing of receipt of the requisite court, regulatory and
other third-party approvals. Although Innergex believes that the
expectations and assumptions on which such forward-looking
statements are based are reasonable, undue reliance should not be
placed on the forward-looking statements because Innergex can give
no assurance that they will prove to be correct.
Since forward-looking statements address future events and
conditions, they are by their very nature subject to inherent risks
and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors and risks.
These include, but are not limited to, the risks associated with
the renewable energy industry in general such as execution of
strategy; ability to develop projects on time and within budget;
capital resources; derivative financial instruments; current
economic and financial conditions; accurate assessment and natural
variability of renewable energy resources; construction, design and
development of new facilities; performance of existing projects;
equipment failure; interest rate and refinancing risk; currency
exchange rates, variation in merchant price of electricity,
financial leverage and restrictive covenants; and relationships
with public utilities. Readers are cautioned that the foregoing
list of factors is not exhaustive. Additional information on these
and other factors that could affect the operations or financial
results of Innergex are included in Innergex's annual information
form available on SEDAR at
www.sedar.com.
There are also risks inherent to the Transaction,
including incorrect assessments of the value of the entity and our
ability to secure non-recourse long term projects level financing
(including the timing and amount thereof). There can also be no
assurance that the strategic, operational or financial benefits
expected to result from the Transaction will be realized. In
addition, the potential divestiture of selected assets is also
subject to inherent risks and uncertainties including the outcomes
of Innergex's exploration to find interested purchaser(s) and
partner(s), the ability to correctly assess the value of the
assets, the consummation and timing of any such transaction(s) and
the terms of such transaction(s), if any, and if consummated, the
ability of Innergex to realize the expected benefits of such
transaction(s).
Forward-Looking Information in this press release is based
on certain key expectations and assumptions made by the
Corporation. The following table outlines Forward-Looking
Information contained in this press release, the principal
assumptions used to derive this information and the principal risks
and uncertainties that could cause actual results to differ
materially from this information.
Principal Assumptions
|
Principal Risks and
Uncertainties
|
Expected closing of the non-recourse project
financing
That the Corporation
is able to successfully secure, on the timeline and in the amount
expected, projects level non-recourse financing to support the
Transaction. That the value of the acquired assets is sufficient to
support such financing.
|
Availability of the
capital
Regulatory and
political risks
Market conditions,
and other risks inherent in project financing
Assessment of the
value of the acquired assets, and performance thereof
Performance of
counterparties
|
Potential divestiture of selected
assets
The Corporation
ability to successfully identify potential purchases, assess and
realize the value of such assess in a successful divestiture, and
the timing thereof. That the Corporation's strategy of divesting
certain assets successfully advances the Corporation's long-term
strategy and enhances the Corporation's value.
|
Accurate assessment
of the value of any divested assets and of the value Innergex will
receive in return
That the
Corporation's long-term strategy improves the Corporation's
value
That the divestiture
of assets closing within a timeframe that allows the Corporation to
use such divestiture to support the Transaction
Market conditions,
and other risk inherent in closing of such transactions
Regulatory and
political risks
Performance of
counterparties
|
Although the Corporation believes that the expectations
and assumptions on which Forward-Looking Information is based are
reasonable, readers of this press release are cautioned not to rely
unduly on this Forward-Looking Information since no assurance can
be given that they will prove to be correct. The forward-looking
statements contained in this press release are made as of the date
hereof and Innergex undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, unless so required by
applicable securities laws.
innergex.com
SOURCE Innergex Renewable Energy Inc.