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Boralex closes refinancing of over $200 million in Québec
Boralex closes refinancing of over $200 million in Québec Canada NewsWire M...
About this update from Boralex Inc. Class A
[{"type":"text","content":"\n\n\n\nBoralex closes refinancing of over $200 million in Québec\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nMONTRÉAL, Dec. 18, 2019\n\n\n\nMONTRÉAL, 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. \nThe 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.\nTaking 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.\n\"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.\"\nAbout Boralex\nBoralex d...