Northland Power refinances solar projects through private placement
Canada's Northland Power Inc. announced in early October the pricing of $232 million in project bonds to be issued by its wholly-owned subsidiary, Northland Power Solar Finance One L.P., which are non-recourse to Northland but are backed by Northland's six Ground-Mounted Solar Phase I projects located across Ontario, Canada.
Northland Power Solar Finance One L.P. has entered into an agency agreement with a syndicate of investment dealers related to the Canadian private placement offering of 4.397% senior secured amortizing Series A bonds which is expected to close on October 8, 2014, subject to customary conditions. The bonds have been provisionally rated BBB (high) by DBRS and will be fully amortized by their maturity in June 2032.
Paul Bradley, Chief Financial Officer of Northland, said:
"This marks the third time Northland subsidiaries have issued project bonds, and is our first issuance backed by renewable power assets. We are very pleased with the continued strong interest shown by the financial community and the creation of value this financing brings to Northland."
Upon closing, the proceeds will be transferred via intercompany loans to the six Ground-Mounted Solar Phase I projects, each a wholly-owned subsidiary of Northland, and then used to repay existing bank debt, settle associated interest rate swaps, and pay transaction costs; the remainder will be distributed to Northland for general corporate purposes. The private placement offering has been co-led by Scotia Capital Inc. and CIBC World Markets Inc.; the dealer syndicate also includes BMO Nesbitt Burns Inc., National Bank Financial Inc. and Casgrain & Company Limited.
The six Solar Phase I projects each own and operate a 10 MW ground-mounted solar facility, comprising 60 MW in aggregate. The solar facilities were developed by Northland and began commercial operations between June and September 2013. The facilities sell all electricity to the Ontario electricity grid under 20-year Feed-in Tariff Contracts with the Ontario Power Authority.
Country news
-
-
October 14, 2014
Innergex closes Tretheway Creek Hydroelectric project financing
Innergex Renewable Energy Inc. has closed a $92.9 million non-recourse construction and term project financing for the Tretheway Creek run-of-river hydroelectric project located in British Columbia, Canada. Read more -
October 24, 2014
Blackstone teams with former Solops management team to fund renewables development company
Blackstone has announced a partnership with a highly experienced management team, led by Matthew Rosenblum, the Founder and Chief Executive Officer at Solops, LLC, to create Onyx Renewable Partners. Read more -
October 29, 2014
TransCanada get environmental approval for Coastal GasLink Pipeline Project
TransCanada Corporation announced last week that the British Columbia Environmental Assessment Office (EAO) has issued an Environmental Assessment Certificate for the Coastal GasLink Pipeline Project. As anticipated, the certificate was issued with a number of conditions resulting from the assessment by the EAO of environmental, social, economic, heritage and health components deemed pertinent to the project. Read more -
October 31, 2014
Samsung and Pattern Development complete C$580m financing of Armow Wind Project
Samsung Renewable Energy, Inc. and Pattern Energy Group LP have announced the completion of a CAD$580 million construction and term loan financing for the Armow Wind power project in Ontario, Canada. Read more -
November 11, 2014
SBM Offshore completes Deep Panuke US Private Placement
Single Buoy Moorings Inc. (SBM) has announced the successful completion of US$450 million of non-recourse senior secured debt by way of a US Private Placement (USPP) for the Deep Panuke Production Field Centre in Nova Scotia, Canada. Read more
