Boralex closes acquisition of stakes in 392 MW wind projects from Invenergy

Boralex has announced the completion of the acquisition of all of the economic interests of Invenergy Renewables in five wind farms in Québec for a total cash consideration of CAD215 million (US$166.5 million), subject to post-closing adjustments to the purchase price under the acquisition agreements.

Located in the MRC d'Avignon and the MRC des Appalaches in Eastern Québec, the projects, which have a combined installed capacity of 392 MW, were commissioned between March 2012 and December 2016. They comprise state-of-the-art Enercon and GE turbines and benefit from long-term Power Purchase Agreements (PPAs) with Hydro-Québec Distribution expiring between 2032 and 2041.

Boralex now assumes the facilities management agreements currently in place and as such will manage the day-to-day business and affairs of the facilities.

All required approvals and consents for the deal, including from the Competition Bureau of Canada, Hydro-Québec and the lenders under the credit agreements for the Projects, were obtained prior to the closing of the acquisition. The community partners holding the remaining interests in two of the projects (Le Plateau II and Roncevaux) also waived their rights of first offer to acquire Invenergy's economic interests.

The aggregate cash consideration for the deal of CAD215 million was financed using the net proceeds from the Boralex's previously announced CAD207 million public bought deal offering of subscription receipts completed through a syndicate of underwriters and a CAD51.8 million concurrent private placement of subscription receipts with the Caisse de dépôt et placement du Québec.

With the closing of the deal now effective, each subscription receipt will be exchanged for one common share in the capital of Boralex, without additional consideration and without further action by the holders of subscription receipts. Holders of subscription receipts will also be entitled to receive a cash amount for each subscription receipt equivalent to the dividend payable on or about 18 September 2018 to holders of record of common shares as of 31 August 2018.