Innergex Renewable Energy has closed a non recourse financing of $570.4m ($423.4m) with regards to four operating wind farms, located in the Gaspé peninsula of Quebec.
Innergex stated that the proceeds from the debt will be used to repay the $400m one year secured bridge loan granted to the company, while acquiring the five Cartier wind farms. The loan has a term of 14 years.
The financing has been provided by MUFG Bank, Bank of Montreal (BMO) as coordinated lead arrangers and joint Bookrunners. Canadian Imperial Bank of Commerce, Sumitomo Mitsui Banking, Canada branch and Bayerische Landes Bank as mandated lead arrangers.
The four wind farms included in this credit facility are 109.5MW Carleton, 100.5MW Gros-Morne, 100.5MW L’Anse-à-Valleau and 58.5MW Montagne Sèche, located in the Gaspé peninsula of Quebec. The fifth wind farm, 109.5MW Baie-des-Sables has not been included, as it secures the corporate revolving credit facilities.
Innergex president and CEO Michel Letellier said: “We are pleased with this financing which surpassed our initial expectation of C$400m ($297.12m) negotiated for the bridge loan, by C$69m ($51.5m). The difference will provide Innergex with even more flexibility to further advance our projects in development and to pursue our growth strategy.”
Innergex said that it has hedged 100% of the interest rate with the lenders for the 14 year duration of the credit facility. The company completed the acquisition of Cartier wind portfolio in October this year, from TransCanada for C$620m ($460.5m).
A few days before acquiring the Cartier wind portfolio, Innergex acquired the Hillcrest 260MW solar plant in Ohio, from Open Road Renewables and MAP Renewable Energy, the developers of the project.
The solar project is connected to Duke Energy owned Hillcrest substation, which is expected to allow the commercial operation date between 2020 and 2021.
Innergex is an independent renewable power producer which develops, acquires, owns and operates hydroelectric facilities, wind farms, solar farms and geothermal power generation plants. It has presence in Canada, the US, France, Chile and Iceland.