Boralex announces closing of the acquisition of CDPQ's 49% equity stake in 3 Quebec wind farms, with a 296 MW installed capacity

MONTREAL, Dec. 2, 2020 /PRNewswire/ - Boralex Inc. ("Boralex" or the "Corporation") (TSX: BLX) is pleased to announce that it has closed the acquisition of the previously announced 49% equity stake held by the Caisse de dépôt et placement du Québec ("CDPQ") in 3 wind farms in Quebec, already 51% owned by Boralex. CDPQ's 49% equity stake represents 145 MW net installed capacity and the three wind farms represent a total capacity of 296 MW. Located in the Avignon RCM in Gaspésie and the Appalaches RCM in eastern Quebec, these farms are equipped with Enercon turbines and benefit from long-term power purchase agreements ("PPAs") with Hydro-Québec Distribution, expiring between 2032 and 2033 with a weighted average remaining contract duration of nearly 12.5 years.

Boralex paid a cash consideration of $121.5 million to CDPQ, which may be supplemented by a conditional consideration of up to $4 million subject to the settlement of certain future conditions that need to be met. Boralex's totaled installed capacity now stands at 2,212 MW.

Highlights of the acquisition

• Acquisition price: $121.5 million in cash paid at closing and an additional amount of up to $4 million after closing, subject to the settlement of certain conditions that need to be met;
• Adds 145 MW net power to Boralex's installed capacity;
• Long-term contracts expiring between 2032 and 2033 with an average remaining duration of almost 12.5 years;
• Additional annual contribution of the wind farms to Boralex's results:
• $31 million to combined EBITDA representing the acquisition of CDPQ's 49% stake;
• $62 million to EBITDA under IFRS representing 100% of EBITDA for wind farms that will now be consolidated in the Corporation's financial statements;
• $10 million or $0.10 per share to discretionary cash flows, an 8% increase over the consolidated amount generated by Boralex in 2019;
• Additional operational and financial synergies expected.

Wind farms description
Des Moulins I wind farm (136 MW) is located in the Appalaches RCM in Quebec. This farm has 59 E-82 wind turbines. Des Moulins II wind farm (21 MW) is located in the Avignon RCM in Gaspésie, Quebec. This farm has nine E-92 wind turbines. Both farms are covered by an existing PPA that expires in December 2033.

Le Plateau I wind farm (139 MW) is located in the Avignon RCM in Gaspésie, Quebec. This park has 60 E-70 E4 wind turbines and is covered by an existing PPA that expires in March 2032.

Each wind farm is funded on a long-term basis through consortiums of international financial institutions. Financing consists of a combination of variable interest rate term loans (a large portion of which is covered by interest rate swaps) and notes or fixed rate loans. Project debt as at September 30, 2020, totalled $402 million (the 49% equity stake is therefore $197 million).

About Boralex
Boralex develops, builds and operates renewable energy power facilities in Canada, France, the United Kingdom and the United States. A leader in the Canadian market and France's largest independent producer of onshore wind power, the Corporation is recognized for its solid experience in optimizing its asset base in four power generation types — wind, hydroelectric, thermal and solar. Boralex ensures sustainable growth by leveraging the expertise and diversification developed over 30 years. Boralex's shares are listed on the Toronto Stock Exchange under the ticker symbol "BLX". 

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Caution Regarding Forward-Looking Statements 
Some of the statements contained in this press release, including those regarding to the addition to the discretionary cash flow from the interests acquired, the accretion to discretionary cash flows per share of Boralex from the interests acquired, the expected EBITDA contribution from the interests  acquired, the expected additional operational and financial synergies, the conditional consideration payable following the closing, the Corporation's business model and growth strategy are forward-looking statements based on current expectations, within the meaning of securities legislation. 

The forward-looking statements are based on material assumptions, including the following: assumptions about the performance the Corporation will obtain from the interests to be acquired, based on management's estimates and expectations with respect to factors related to production and other factors; assumptions made about EBITDA margins; assumptions made about the situation in the sector and the economic situation in general, competition and the availability of financing. 

Although Boralex believes that the expectations reflected by the forward-looking statements presented in this news release are reasonable, Boralex would like to point out that, by their very nature, forward-looking statements involve risks and uncertainties such that its results or the measure it adopts could differ materially from those indicated by or underlying these statements, or could have an impact on the degree of realization of a particular forward looking statement. 

Unless otherwise specified by the Corporation, the forward-looking statements do not take into account the possible impact on its activities, transactions, non-recurring items or other exceptional items announced or occurring after the statements are made. There can be no assurance as to the materialization of the results, performance or achievements as expressed or implied by forward-looking statements. The reader is cautioned not to place undue reliance on such forward-looking statements. 

Unless required to do so under applicable securities legislation, Boralex management does not assume any obligation to update or revise forward-looking statements to reflect new information, future events or other changes. 

SOURCE Boralex Inc.

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