VANCOUVER, Sept. 21, 2016 /PRNewswire/ - Alterra Power Corp. ("Alterra") and funds managed by Axium Infrastructure Inc. ("Axium") are pleased to announce the conversion of the $176.5 million Jimmie Creek construction loan to a term loan.
The non-recourse loan facility is priced at an all-in rate of 5.26% and will amortize over 40 years, except for the final 10% of principal which will be paid at maturity in 2056. The project lender group consists of The Manufacturers Life Insurance Company (administrative agent and lead arranger), Sun Life Assurance Company of Canada, The Canada Life Assurance Company, Industrial Alliance Insurance and Financial Services Inc. and The Great-West Life Assurance Company.
The Jimmie Creek project began commercial operations on August 1, 2016 and provides 62 MW of clean power capacity to southwest British Columbia. The Jimmie Creek project is now selling 100% of its renewable power under a 40-year energy purchase agreement with BC Hydro that expires in 2056. Alterra and Axium own 51% and 49% of the project, respectively, which is operated by Alterra in cooperation with our partners, Klahoose First Nation, Tla'amin Nation and shíshálh Nation.
Jay Sutton, Alterra's VP Hydro, said, "This is a huge milestone for the project, completing the transition from construction into the initial 40-year operations phase. Jimmie Creek has come out of the gate strongly, generating at 110% of plan in August and 121% of plan so far in September."
About Alterra Power Corp.
Alterra Power Corp. is a leading global renewable energy company, operating seven power plants totaling 819 MW of generation capacity including British Columbia's largest run-of-river hydro facility and largest wind farm, the recently completed Shannon and Jimmie Creek projects, and two geothermal facilities in Iceland. Alterra owns a 381 MW share of this capacity, generating over 1,700 GWh of clean power annually. Alterra also has an extensive portfolio of exploration and development projects and a skilled team of developers, builders and operators to support its growth plans.
The company trades on the Toronto Stock Exchange under the symbol AXY and OTC in the United States as MGMXD.
About Axium Infrastructure Inc.
Axium Infrastructure is an independent portfolio management firm dedicated to generating long-term investment returns through investing in core infrastructure assets. Axium Infrastructure manages dedicated infrastructure funds having $1.5 billion in assets under management as well as approximately $1.0 billion in co-investments. The firm benefits from the capabilities of a group of specialists with decades of experience acquiring, developing, financing, operating and managing infrastructure assets.
Cautionary Note Regarding Forward-Looking Information
Certain statements and information included in this news release are "forward-looking information" within the meaning of Canadian securities laws that involve risks and uncertainties. Forward-looking information relates to future events or future performance and reflects management's expectations and beliefs regarding future events as of the date hereof. Examples of forward-looking information in this news release include statements regarding the length of the operations, expected power generation, revenue and financial results of the Jimmie Creek project, and the annual generation of Alterra's projects. Forward-looking information is based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection. Since forward-looking information relates to future events and conditions, by its very nature it requires making assumptions and involves inherent risks and uncertainties. Alterra cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking information. Material risk factors and assumptions are set out in the management's discussion and analysis section of Alterra's most recent annual and quarterly reports and in Alterra's Annual Information Form for the year ended December 31, 2015. Although Alterra has attempted to identify important factors that could cause actual actions, events or results to differ materially from forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate and undue reliance should not be placed on forward-looking information. Except as required by law, Alterra undertakes no obligation to update any forward-looking information to reflect new information, subsequently or otherwise.
SOURCE Alterra Power Corp.