VANCOUVER,
April 3, 2013 /CNW/ - Run of River
Power Inc. ("ROR Power" or the "Company") (TSXV:
ROR) is pleased to announce that the 25 MW Skookum Creek Power
Project (the "Project") has successfully closed third-party
construction financing with the Bank of Montreal ("BMO") and the Canadian Western Bank
("CWB"). BMO and CWB have committed to provide
$70 million in construction financing
to the Project along with a $77
million non-revolving term credit facility ("Take-out
facility") once the Commercial Operation Date ("COD") of the
Project has been reached. The maturity date of the Take-out
facility is 42 months after the initial advance which is
anticipated to be at COD of the Project. The Project will
begin to seek permanent third party debt financing once COD has
been achieved.
Richard Hopp,
President and CEO of Run of River
Power remarks: "The close of this financing marks a major
milestone for the Company and will significantly enhance
shareholder value with the realization of the Project."
Further to the Company's news releases on
February 10, 2012 and November 22, 2012, Concord Pacific Green Energy
Inc., a subsidiary of Concord
Pacific Group (collectively, "Concord") acquired 100% interest in
the Project. ROR Power continues to be responsible for
the Project's development, engineering and construction pursuant to
a construction agreement as well as ongoing operations thereafter.
'We are pleased the Project is presently under construction with
about 44% of the construction complete, reports Hopp. "We are
on time and on budget." The Skookum Power Project's targeted
COD is January 2014.
ROR Power will continue to provide management
services for the Project for a fee based on the Project's post-debt
service cash flows. In addition, ROR Power has retained a royalty
interest in the Project which will pay it 10% of the Project's
gross revenues. ROR Power has an option to convert its royalty
interest into a 50% equity interest in the Project after the fifth
anniversary of the Project's COD. ROR has also received a
development fee from Concord in
respect of the Project.
The Project, ROR Power and Concord have also entered into forward
interest rate swap arrangements with BMO that eliminates its
exposure to floating rates under the financing.
Cliff McCracken, Senior
Vice-President of Concord Pacific adds: "We are excited to
expand our Concord Green Energy portfolio to soon provide green
renewable power to Metro Vancouver. Green energy solutions of
scale will be a key component to the success of sustainable
communities in the future."
About Run of River Power Inc.
ROR Power develops renewable, sustainable energy
through its portfolio of clean energy projects. The company helps
diversify BC's energy mix by providing a cleaner way to generate
power and increasing the security of BC's energy supply. ROR
Power operates an Eco Logo© certified hydroelectric power
generation station at Brandywine Creek, near Whistler, BC that provides green power for
about 4,000 homes. With a total development potential of
approximately 400 MW, the company is well positioned for profitable
growth.
About Concord Green Energy
Participating in the future of infrastructure
needs of Canadians has always been a cornerstone to Canada's first urban community builder.
Concord Pacific created Concord Green Energy to explore and support
a variety of zero carbon energy producing projects of scale.
Creating sustainable and clean energy at the source to power the
communities of the future is the vision of Concord Green Energy.
Concord Green Energy's first power project, Red Lily I in
Saskatchewan, is complete and is
successfully generating renewable energy.
Forward-Looking Statements
Statements in this release which describe Run of
River Power Inc.'s intentions, expectations or predictions, or
which relate to matters that are not historical facts are
forward-looking statements. These forward-looking statements
involve unknown risks and uncertainties which may cause the actual
results, performances or achievements of Run of River Power Inc. to
be materially different from any future results, performances or
achievements expressed in or implied by such forward-looking
statements. Run of River Power Inc. may update or revise any
forward-looking statements, whether as a result of new information,
future events or changing market and business conditions and will
update such forward-looking statements as required pursuant to
applicable securities laws.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Run of River Power Inc.