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".
More information is available
at www.boralex.com or www.sedar.com. Follow us
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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.
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SOURCE Boralex Inc.