- Closing of a US$322.7 million
(CAN$441.6 million) upfront tax equity commitment and PAY-GO
payments with J.P. Morgan and Capital One
- On-site construction activities are progressing very well and
according to the schedule
LONGUEUIL, QC, Oct. 19,
2023 /CNW/ - Innergex Renewable Energy Inc. (TSX:
INE) ("Innergex" or the "Corporation") is pleased to announce the
closing of a US$322.7 million
(CAN$441.6 million) tax equity commitment ("Upfront Investment")
with J.P. Morgan and Capital One (the "Tax Equity Investors") for
the 329.8 MW Boswell Springs Wind Project located in
Wyoming, United States (the "Project"). The Tax Equity
Investors have committed to fund the Upfront Investment at
substantial completion and to make cash payments as production tax
credits are generated ("PAY-GO") over a 10-year period.
"This tax equity commitment completes the financing activities
of the Boswell Springs project, one of Innergex's short-term
funding initiatives to increase the Corporation's liquidity," said
Michel Letellier, President and
Chief Executive Officer of Innergex. "We are proud to partner with
J.P. Morgan and Capital One for the first time as tax equity
investors as this demonstrates Innergex's ability to attract new
investors. We have all the necessary financial support to
successfully build this large wind project by the end of 2024.
Progress on site is well underway and our teams are dedicated to
delivering the project within the given timeframe. Over the years,
Innergex has proven its expertise in creating accretive financial
structures that include non-recourse construction financings and
tax equity investments to support its expansion. We believe that we
are well positioned to continue our growth as a developer of
profitable renewable energy projects in the United States and our other key markets."
The construction of Boswell Springs is progressing well, with
the 2023 activities coming to an end. The installation of the
collection system is 90% complete, while splicing is underway. Work
on the access roads is complete, and all foundations have been
poured. The generation-tie line is also advancing, with over 80% of
structures in place and stringing of the wire at 61%.
On July 14, 2023, Innergex
announced the closing of a US$534
million (CAN$730 million) construction financing including a
US$322.7 million (CAN$441.6 million)
tax equity bridge loan and a US$203
million (CAN$278 million) 10-year non-recourse term loan for
the Boswell Springs Wind Project, of which US$103 million
(CAN$141 million) was used to refund equity over contributed by
Innergex and reduce its corporate revolving credit facility.
Operating cash flows from the Boswell Springs Wind Project are
expected to reach approximately US$22 million (CAN$30 million)
on an annual basis. In addition, the project is expected to benefit
from 110% of the Production Tax Credits ("PTCs"), which should
contribute an annual approximative US$42 million (CAN$57
million), indexed to inflation over a 10-year period, including the
10% Energy Community PTC Bonus. The Project is currently planned to
also be eligible for the 10% Domestic Content PTC Bonus which could
contribute annually an additional $3.8 million (CAN$5.2 million) indexed to
inflation over 10-year period and be eligible for
transferability.
The electricity to be produced by the Boswell Springs Wind
Project will be sold under a 30-year, 320 MW busbar power purchase
agreement signed with PacifiCorp, a Berkshire Hathaway subsidiary.
The commercial operation date is scheduled for Q4 2024.
About Innergex Renewable Energy
Inc.
For over 30 years, Innergex has believed in a world where
abundant renewable energy promotes healthier communities and
creates shared prosperity, which led to Innergex being recognized
as Canada's best corporate
citizens in 2023 by Corporate Knights. As an independent renewable
power producer which develops, acquires, owns and operates
hydroelectric facilities, wind farms, solar farms and energy
storage facilities, Innergex is convinced that generating power
from renewable sources will lead the way to a better world.
Innergex conducts operations in Canada, the United
States, France and
Chile and manages a large
portfolio of high-quality assets currently consisting of
interests in 85 operating facilities with an aggregate net
installed capacity of 3,676 MW (gross 4,226 MW) and an energy
storage capacity of 159 MWh, including 40 hydroelectric
facilities, 35 wind facilities, 9 solar facilities and 1 battery
energy storage facility. Innergex also holds interests
in 13 projects under development with a net installed
capacity of 760 MW (gross 849 MW) and an energy storage capacity of
605 MWh, 5 of which are under construction, as well as
prospective projects at different stages of development with an
aggregate gross installed capacity totalling 9,352 MW. Its approach
to building shareholder value is to generate sustainable cash
flows, provide an attractive risk-adjusted return on invested
capital and to distribute a stable dividend.
To learn more, visit innergex.com or connect with us
on LinkedIn.
Cautionary Statement Regarding
Forward-Looking Information
To inform readers of the Corporation's future prospects, this
press release contains forward-looking information within the
meaning of applicable securities laws ("Forward-Looking
Information"), including the Corporation's successful construction
and financing (including tax equity funding) of the projects under
construction, and other statements that are not historical facts.
Forward-Looking Information can generally be identified by the use
of words such as "approximately", "may", "will", "could",
"believes", "expects", "intends", "should", "would", "plans",
"potential", "project", "anticipates", "estimates", "scheduled" or
"forecasts", or other comparable terms that state that certain
events will or will not occur. It represents the projections and
expectations of the Corporation relating to future events or
results as of the date of this press release.
Forward-Looking Information includes future-oriented financial
information or financial outlook within the meaning of securities
laws, including information regarding the Corporation's targeted
Operating Cash Flows, the estimated start of commercial operation
of the project, the qualification of U.S. projects for PTCs and
other statements that are not historical facts. Such information is
intended to inform readers of the potential financial impact of
expected results, of the expected commissioning of Development
Projects, of the potential financial impact of completed and future
acquisitions and of the Corporation's ability to sustain current
dividends and to fund its growth. Such information may not be
appropriate for other purposes.
Forward-Looking Information is based on certain key assumptions
made by the Corporation, including, without restriction, those
concerning hydrology, wind regimes and solar irradiation;
performance of operating facilities, acquisitions and commissioned
projects; project performance; availability of capital resources
and timely performance by third parties of contractual obligations;
favourable market conditions for share issuance to support growth
financing; favourable economic and financial market conditions; the
Corporation's success in developing and constructing new
facilities; successful renewal of PPAs; sufficient human resources
to deliver service and execute the capital plan; no significant
event occurring outside the ordinary course of business such as a
natural disaster, pandemic or other calamity; continued maintenance
of information technology infrastructure and no material breach of
cybersecurity.
For more information on the risks and uncertainties that may
cause actual results or performance to be materially different from
those expressed, implied or presented by the forward-looking
information or on the principal assumptions used to derive this
information, please refer to the "Forward-Looking Information"
section of the Management's Discussion and Analysis for the three
months ended June 30, 2023.
www.innergex.com
SOURCE Innergex