VANCOUVER, Sept. 15, 2017 /PRNewswire/ - Alterra Power Corp. (TSX: AXY) is pleased to announce the execution of a US$133 million (€112 million) refinancing of the corporate loans at its Icelandic subsidiary, HS Orka hf. Primary uses of loan proceeds include construction of the 9.9 MW Brúarvirkjun hydro project, drilling and other field development activities at the Reykjanes geothermal operation, and the retirement of €52 million of currently outstanding loans.
The new loan, provided by Arion Bank, carries an initial term of five years with options for HS Orka to extend the loan's term up to 18 years, subject to meeting certain extension conditions. The loan will be secured by the assets of HS Orka and is non-recourse to Alterra. The loan will fund in tranches upon the fulfillment of certain conditions precedent.
"We are pleased to complete this refinancing, keeping us on track for our planned hydro and geothermal growth in Iceland," said Lynda Freeman, Alterra's CEO. "The new loan will also enable increased dividends to Alterra and HS Orka's other shareholders beginning in 2019."
About Alterra Power Corp.
Alterra Power Corp. is a global renewable energy company that manages operations of eight power plants totaling 825 MW of hydro, wind, geothermal and solar generation capacity in Canada, the USA and Iceland. Alterra owns a 363 MW share of this capacity, generating over 1,500 GWh of clean power annually.
Alterra is also constructing the 200 MW Flat Top wind project in central Texas, which is expected to be in operation by 1H 2018 (51% owned by Alterra). Upon the completion of Flat Top, Alterra will operate nine power plants totaling 1,025 MW of capacity and will own a 465 MW share of this capacity, generating almost 2,000 GWh of clean power annually. Alterra also has an extensive portfolio of development projects and a skilled team of developers, builders and operators to support its growth plans.
Alterra trades on the Toronto Stock Exchange under the symbol AXY.
About HS Orka hf
Alterra owns 53.9% of HS Orka, the largest privately owned power company in Iceland. HS Orka supplies 7% of the country's power needs and approximately 11% of the country's heating needs. Our Svartsengi and Reykjanes power plants comprise 174 MW of geothermal power capacity. We also generate 190 MW of thermal energy for district heating, and we own a 30% interest in the Blue Lagoon, a tourist resort that adjoins our Svartsengi power plant.
About Arion Bank
Arion Bank is a leading Icelandic bank offering universal financial services to companies, institutional investors and individuals. These services include corporate and retail banking, investment banking, capital markets services, treasury services, asset management and comprehensive wealth management for private banking clients.
Cautionary Note Regarding Forward-Looking Information
Certain statements and information included in this news release are "forward-looking information" within the meaning of applicable 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 successful achievement of the conditions precedent to fully fund the refinancing; the retirement of the existing loans at HS Orka; the scheduling and successful completion of the Company's expansion and development efforts in respect of the programs funded under the refinancing; the expected use of loan proceeds; the distribution of increased dividends to HS Orka's shareholders beginning in 2019; and Alterra's projected generation. 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 include whether the actual power generation from our operations meets our expectations; the Company's ability to successfully satisfy the conditions to the full funding of the refinancing; the scheduling and successful completion of the Company's expansion and development efforts in respect of the programs funded under the refinancing; the successful development, permitting, construction and financing of the Brúarvirkjun hydro project; the potential for expansion and development of the Reykjanes facility; the successful satisfaction of regulatory requirements related to any such plans; whether the Company's efforts to further increase generation at the Reykjanes facility will be successful; the ability of HS Orka to disseminate increased dividends to its shareholders beginning in 2019, as well as others 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, 2016. 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.