VANCOUVER, Oct. 16, 2014 /PRNewswire/ - Alterra Power Corp. (TSX: AXY) and Fiera Axium Infrastructure Inc. (through a managed fund) announce the completion of a $176.5 million non-recourse loan facility for the $227.4 million Jimmie Creek hydroelectric project.
"We are pleased to complete the Jimmie Creek financing, which locks in low-cost capital for this project for the next 42 years," said John Carson, Alterra's Chief Executive Officer. "Construction is proceeding well on this next leg of our growth plan, and we are on track to have the project delivering clean power to British Columbia in mid-2016, as planned."
The construction plus term 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. 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. Proceeds from the loan will be used to pay for the remaining construction costs of the Jimmie Creek project which has been under construction since March of this year. The project is expected to be ready for commercial operations in July 2016.
The Jimmie Creek project will provide 62 MW of clean power capacity to southwest British Columbia and will sell 100% of its power to BC Hydro for 40 years beginning in August 2016. Alterra and Fiera Axium now own 51% and 49% of the project, respectively.
"We are pleased to have reached this significant milestone for Jimmie Creek. It demonstrates the strength of our partnership with Alterra and our ability to develop renewable energy projects" said Dominic Chalifoux, Vice President and Senior Asset Operations Director of Fiera Axium.
About Alterra Power Corp.
Alterra Power Corp. is a leading global renewable energy company, operating six power plants totaling 568 MW of generation capacity, including British Columbia's largest run-of-river hydro facility and largest wind farm, two geothermal facilities in Iceland, and a geothermal plant in Nevada. Alterra owns a 262 MW share of this capacity, generating approximately 1,300 GWh of clean power annually. Alterra has an extensive portfolio of exploration and development projects and a skilled international team of developers, explorers, 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 MGMXF.
About Fiera Axium Infrastructure Inc.
Fiera Axium Infrastructure Inc. is an independent portfolio management firm dedicated to generating long-term investment returns through investing in core infrastructure assets. Fiera Axium manages dedicated infrastructure funds having in excess of $1.1 billion in assets under management. The firm combines the capabilities of a group of specialists with decades of combined experience acquiring, developing, financing, operating and managing infrastructure assets, with the fund management expertise of one of Canada's leading independent fund managers in Fiera Capital Corporation (TSX: FSZ).
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 potential unexpected delays, the timing of construction completion, and equipment delivery dates. Forward-looking information is based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection, including assumptions based on historical trends, current conditions and expected future developments such as the ability to satisfy conditions precedent for subsequent construction drawdowns and term conversion and customary covenants to keep the facility in good standing and that scheduling, construction and design continue to be as expected. 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 include construction-related risks including risk of delays and cost overruns associated with design and construction, risks related to performance of third-party contractors, as well as those 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, 2013. 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, subsequent or otherwise.
SOURCE Alterra Power Corp.