Boralex closes public offering and private placement to fund acquisition of stakes in 392 MW wind projects

Boralex Inc. has announced that it has closed its previously announced public offering of subscription receipts for gross proceeds of approximately CAD207 million (US$157.0 million), which includes the full exercise of the over-allotment option by the underwriters.

The subscription receipts were offered by way of a short form prospectus dated 4 July 2018 in all of the provinces of Canada. The offering was completed through a syndicate of underwriters led by National Bank Financial Inc. and RBC Capital Markets, and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., Desjardins Securities Inc., TD Securities Inc., Cormark Securities Inc. and Industrial Alliance Securities Inc., who have purchased, on a bought deal basis, an aggregate of 10,247,650 subscription receipts at a price of CAD20.2 (US$15.3) per subscription receipt.

The company has also closed the concurrent private placement of subscription receipts to Caisse de dépôt et placement du Québec for gross proceeds of approximately CAD51.8 million (US$29.3 million), which includes the full exercise of the private placement option by la Caisse.  La Caisse purchased 2,562,200 Placement Subscription Receipts at a price of CAD20.2 (US$15.3) per Placement Subscription Receipt.

The aggregate net proceeds of the offering and the concurrent private placement will be used by Boralex to pay the purchase price of the agreed acquisition all of Invenergy Renewables LLC's interests in:

• The 136 MW Des Moulins I wind farm project located in the MRC des Appalaches, Québec (51%)
• The 21 MW Des Moulins II wind farm project located in the MRC d'Avignon in Gaspésie, Québec (51%)
• The 139 MW Le Plateau I wind farm project located in the MRC d'Avignon in Gaspésie, Québec (51%)
• The 21 MW Le Plateau II wind farm project located in the MRC d'Avignon in Gaspésie, Québec (59.96% economic interest)
• The 75 MW Roncevaux wind farm project located in the MRC d'Avignon in Gaspésie, Québec (50%)

The agreed purchase price is CAD215 million (US$163.1 million). The balance from the exercise of the over-allotment option and the private placement option will be used to repay indebtedness under the revolving credit facility and for general working capital purposes.

The Des Moulins and Le Plateau I acquisition remains subject to customary regulatory approvals and closing conditions, and closing is expected to occur in August 2018. Both of the Le Plateau II and Roncevaux acquisitions were subject to rights of first offer (ROFOs) in favour of the community partners with interests in the respective projects. The ROFOs were waived by the community partners holding interests in Roncevaux, while the acquisition of Le Plateau II remains subject to the exercise, waiver or expiration of the ROFO of the relevant community partner.