Boralex closes financing of two projects
MONTREAL, Aug. 6, 2013 /PRNewswire/ - Boralex Inc. ("Boralex" or the "Corporation") (TSX: BLX) has closed financing for the Jamie Creek hydroelectric project in Canada and, through its subsidiary Boralex Europe S.A., for the Vron wind power project in France.
"The closing of these two financing arrangements is further recognition of the quality of the projects we develop and the capital market's trust in Boralex to successfully complete the construction of both hydroelectric and wind power assets," stated Boralex President and CEO Patrick Lemaire.
The long-term financing of the 22 MW Jamie Creek hydroelectric power station located near Gold Bridge, British Columbia, is provided by Canada Life Assurance Company and Great West Life Assurance Company for a total amount of $55.3 million, representing approximately 85% of estimated project costs. The Corporation was advised by TD Securities Inc. for completion of the transaction.
The loan will enjoy a nine-year grace period for repayment of principal and be amortized thereafter over a 31-year period at a rate of approximately 5.42% for the full term of the loan.
Construction at the Jamie Creek site is currently underway, with commissioning planned for the first quarter of 2014. To date, construction is on schedule and on target to its initial budget.
The long-term financing for the 8 MW Vron wind farm is provided by SAAR LB, a German bank. The total amount of the financing will be nearly €14 million ($19 million), or approximately 82% of the total project costs, excluding certain short-term advances related to the payment of sales taxes.
Amortized over a 15-year period, the loan will bear interest at a rate of approximately 4% for the full term of the loan.
The power generated at the Vron wind farm will be sold to Électricité de France under a long-term contract with a term of 15 years. Commissioning is slated for September 2013.
Boralex is a power producer whose core business is dedicated to the development and the operation of renewable energy power stations. Currently, the Corporation operates an asset base with an installed capacity of almost 500 MW in Canada, the Northeastern United States and France. Boralex is also committed under power development projects, both independently and with Canadian and European partners, to add approximately 550 MW of power that will be put in service by the end of 2015. With more than 200 employees, Boralex is known for its diversified expertise and in-depth experience in four power generation types — wind, hydroelectric, thermal and solar. Boralex's shares and convertible debentures are listed on the Toronto Stock Exchange under the ticker symbols BLX and BLX.DB, respectively. More information is available at www.boralex.com or www.sedar.com.
SOURCE BORALEX INC.