MONTRÉAL and LYON, France,
Nov. 28, 2019 /CNW Telbec/ - Boralex
Inc. ("Boralex" or the "Corporation") (TSX: BLX) is pleased to
announce the closing of agreements to refinance almost all of its
wind farm operations in France,
for a total of $1.7 billion
(€1.1 billion), divided among three credit agreements maturing
respectively in 2034, 2036 and 2040. This is the largest
refinancing agreement in the renewable energy sector in
France and without question the
largest refinancing arrangement ever for Boralex.
The transaction immediately makes available financial resources
totalling more than $178 million (€123 million), achieved
primarily by grouping together assets that were previously financed
individually through 30 different credit agreements. This amount
will be used to reduce Boralex's existing corporate credit
facility, resulting in greater capacity to fund the development of
future projects across the Corporation.
In addition to the amount made available in the corporate credit
facility, the financing includes $200 million (€140 million)
for the construction of short-term projects. Furthermore, an
additional $180 million (€125 million) tranche to finance the
construction of future projects should become available in early
2020 once the necessary documents have been finalized. Beyond the
benefits stemming from the more favourable market conditions, this
new revolving tranche will accelerate the development of Boralex's
future projects. When built, these projects will be added to the
portfolio of projects benefiting from the terms of the refinancing
arrangement.
Taking advantage of the very good conditions on the European
debt market, this refinancing arrangement reduces Boralex's average
interest rate for these assets and projects by 95 basis points,
from 2.70% to 1.75%. This rate reduction, coupled with the
optimization of its capital structure, will reduce the
Corporation's consolidated annual interest expense by
$15 million (12%).
Lastly, estimated net non-recurring expenses of $17 million
(€12 million) related mainly to penalties for early repayment
will be recorded in the 2019 fourth quarter results.
"This refinancing is a major step forward that will free up
significant financial resources and reduce the cost of implementing
our strategic plan," said Bruno
Guilmette, Vice President and Chief Financial Officer of
Boralex. "This refinancing operation increases our financial
flexibility and creates an even stronger bond with our European
financial partners, who have all expressed great confidence in our
leadership and business model, for which I thank them."
"I'd like to thank the banks and our advisors for being such
solid partners in this complex undertaking," said Nicolas Wolff, Vice President and General
Manager of Boralex Europe. "The success of this refinancing
arrangement, the largest in the renewable energy and wind sectors
in France, is an expression of
confidence in the future of Boralex and more broadly in the
renewable energy sector."
Having had a special relationship with the Boralex Group for
many years, it was natural for the CIC, Bpifrance, Crédit
Agricole, represented by Crédit Agricole Corporate and
Investment Bank and Unifergie, along with the Caisse
Régionale Nord de France,
CaixaBank, and La Banque Postale to jointly arrange
the financing for this transaction. They were pleased to assist
Boralex in the optimization of its operations and to thereby
contribute to the Corporation's future development in the
fast-growing renewable energy market in France: "We are delighted to take part in this
milestone transaction for the future of Boralex that will support
the ambitions of this major player in France's energy
transition."
Law firms De Pardieu, Brocas, Maffei and Linklaters
LLP as well as financial advisors Messier Maris, Ester and
KPMG made a significant contribution to the success of
this historic transaction.
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 sustained growth
by leveraging the expertise and diversification developed over the
past 25 years. Boralex's shares are listed on the Toronto Stock
Exchange under the ticker symbol BLX. More information is available
at www.boralex.com or www.sedar.com. Follow us on Facebook,
LinkedIn and Twitter.
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SOURCE Boralex Inc.