MONTRÉAL, Dec. 18, 2019 /CNW
Telbec/ - Boralex Inc. ("Boralex" or the "Corporation") (TSX:
BLX) is pleased to announce the closing of an agreement to
refinance over $200 million for Le Plateau 1 wind farm
(139 MW), for which Boralex and Caisse de dépôt et placement du
Québec ("CDPQ") respectively hold a 51% and 49% stake. The wind
farm is located in the Gaspé region of Québec.
The new credit agreement will mature in March 2032, the same end date as the power
purchase agreement with Hydro-Québec. The prior agreement matured
in 2022.
Taking advantage of the very good market conditions, with this
financing arrangement Boralex has reduced its average interest rate
for this operating asset by 350 basis points, from 6.90% to 3.40%.
The refinancing will also free up financial resources of a total of
$30 million. Boralex's 51% share of this amount will be about
$15 million and will be used to reduce the Corporation's
current corporate credit facility. The combined impact of the
decrease in both the interest rate and the amount drawn on the
corporate credit facility will reduce Boralex's interest expense by
nearly $2 million annually on a combined basis.
"We are pleased that we were able to align the financing
maturity date with that of our power purchase contract for this
wind farm, thereby obtaining additional financial resources for
continued growth," said Bruno
Guilmette, Vice President and Chief Financial Officer of
Boralex. "The refinancing conditions are very competitive,
indicating the financial market's confidence in Boralex. The
arrangement is also consistent with the Optimization initiative in
our strategic plan announced this past June and follows upon the
convertible debenture redemption and the closing of the historic
refinancing agreement in France,
all completed within the past two months."
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.
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Caution Regarding Forward-Looking Statements
Some of the statements contained in this press release are
forward-looking statements based on current expectations, within
the meaning of securities legislation.
Boralex would like to point out that, by their very nature,
forward-looking statements involve risks and uncertainties such
that its results or the measures 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.
While the Corporation considers the assumptions on which these
forward-looking statements are based to be reasonable based on
information currently available, they may prove to be incorrect.
The reader is cautioned not to place undue reliance on such
forward-looking statements.
Unless required to do so under applicable securities
legislation, management of Boralex does not assume any obligation
to update or revise forward-looking statements to reflect new
information, future events or other changes.
SOURCE Boralex Inc.