- Proceeds used to repay the existing $94.1 million project financing on three wind
farms and the $400 million one-year
secured bridge loan obtained on October 24,
2018
- Balance of proceeds of $69.0
million applied towards deleveraging corporate credit
facilities
- Increases Innergex flexibility to pursue its growth
strategy
LONGUEUIL, QC, Dec. 19, 2018 /CNW Telbec/ - Innergex Renewable
Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") is pleased
to announce the closing of a non recourse financing of $570.4
Million with regards to four operating wind farms ("Cartier
Credit Facility"), known as Carleton, Gros-Morne, L'Anse-à-Valleau and
Montagne Sèche, located in the Gaspé peninsula of Quebec. Innergex became the sole owner of the
five Cartier wind farms on
October 24, 2018. The Baie-des-Sables wind farm is not included to
secure the Cartier Credit Facility as it secures the corporate
revolving credit facilities ("Corporate Facilities"). The Cartier
Credit Facility has a term of 14 years. Proceeds of the loan will
be used to repay the existing credit facilities of the
L'Anse-à-Valleau, Carleton and
Montagne Sèche wind farms and to repay the $400 million one-year secured bridge loan granted
to Innergex at the time of the acquisition of the five Cartier wind farms. Innergex will use the rest
of the proceeds, net of expenses, to deleverage its Corporate
Facilities.
"We are pleased with this financing which surpassed our initial
expectation of $400 million
negotiated for the bridge loan, by $69.0
million. The difference will provide Innergex with even more
flexibility to further advance our projects in development and to
pursue our growth strategy," said Michel
Letellier, President and Chief Executive Officer of
Innergex.
Innergex has hedged 100% of the interest rate with the lenders
for the duration of the Cartier Credit Facility. The all-in
interest rate for the loan is therefore fixed at around 4.33% for
14 years.
The $570.4 million non-recourse
financing is extended by MUFG Bank, Ltd. ("MUFG") and Bank of
Montreal ("BMO"), as Coordinating
Lead Arrangers and Joint Bookrunners and Canadian Imperial Bank of
Commerce, Sumitomo Mitsui Banking Corporation Canada branch and
Bayerische Landes Bank, New York
Branch as Mandated Lead Arrangers. MUFG acts as administrative and
collateral agent and BMO as syndication agent.
Concurrent with closing, Innergex amended and restated its
Corporate Facilities to adjust the security package and extend the
maturity date from December 2022 to
December 2023.
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 strategy. Its
approach 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.
innergex.com
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, the
financial benefits expected to result from the financing described
herein or that the Corporation will be able to successfully execute
its strategy ("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.
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.
SOURCE Innergex Renewable Energy Inc.