MONTRÉAL, Feb. 2, 2021
/PRNewswire/ - Boralex Inc. (TSX: BLX) ("Boralex" or the
"Corporation") announces the closing of the previously reported
acquisition of the controlling interests in a portfolio of seven
solar plants located in the United
States, for a purchase price of CA $277 million (US $215.6
million) after certain adjustments made as per the
acquisition agreements.
The seven solar plants have a total gross installed capacity of
209 MWac, whereby the acquired interests result in a net installed
capacity of 118 MWac to Boralex. Since Boralex will control such
solar assets, the financial information with respect thereto will
be reported on a consolidated basis.
The solar plants, located in California (5), Alabama (1) and Indiana (1), were commissioned between 2014
and 2017 and benefit from long-term Power Purchase Agreements
("PPAs") with the Regents of the University of
California, Alabama Power Company, PG&E, Southern
California Edison, City of Palo
Alto, and Indianapolis Power & Light. Alabama Power has
not exercised the right of first refusal it had regarding the
Lafayette solar plant.
Following the transaction, Boralex's total installed capacity
worldwide stands at 2,455 MW.
Selected Highlights
- Purchase price: CA$277M (US$215.6M).
- Project debt financing of CA$192M (US$149M) completed with National Bank of
Canada, Silicon Valley Bank, Caixa
Bank and Bayern LB. Debt is covering 69% of the purchase
price.
- Adds 209 MWac to Boralex's installed capacity.
- Long term contracts with a remaining weighted average duration
of close to 21.5 years.
- Expected EBITDA contribution: around CA$35M (US $27M) under IFRS representing 100% of EBITDA
for solar farms that will be consolidated in the Corporation's
financial statements.
- Accretive to discretionary cash flow (AFFO) per share in the
first year with expected AFFO of about CA$4M (US $3M) or $0.03 per
share, a 3% increase over the consolidated amount generated by
Boralex in 2019.
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 on Facebook, LinkedIn and
Twitter.
Caution Regarding Forward-Looking Statements
Some of
the statements contained in this press release, including those
regarding the transaction with CRE, the benefits from the
transaction and the acquired interests, the accretion to
discretionary cash flows, the expected EBITDA contribution from the
interests acquired, the expected synergies from the
transaction, the expected expiry dates of the PPAs, the targeted
debt to equity contributions and the completion of financing 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.