STOCK SYMBOL: GLH.UN/TSX
GATINEAU, QC, Sept. 30 /CNW Telbec/ - Great Lakes Hydro Income Fund
(GLH.UN: TSX) today announced that it will issue, through a private placement,
$225 million of senior secured bonds maturing in 20 years and bearing an
interest rate of 5.6 percent per annum. The transaction is expected to close
October 6, 2005.
The senior bonds are secured by the LiGevre Power System. The net proceeds
of the offering will be used to repay a $125 million bridge loan, all
outstanding amounts on the current bank facilities and the capital expended
for the construction of the 9 MW Cedar Dam hydroelectric generating station.
The remaining proceeds will be used to partially fund future acquisitions or
to support the Fund's 20 year capital expenditure plan.
"We are extremely pleased with the favourable interest rate on this debt
financing. The LiGevre Power system generates stable, long-term cash flow and
is an ideal asset for a long-term financing," said Richard Legault, President
and Chief Executive Officer of the Fund. "The size of the financing allows us
to fully fund our Cedar Dam project through long-term debt and to reduce our
capital expenditure reserve by $1.5 million per year by repaying all amounts
outstanding on our current bank facility."
The senior bonds have been assigned a preliminary rating of A (low), with
a Stable trend, by Dominion Bond Rating Service Limited (DBRS).
CIBC World Markets and Trilon Securities acted as agents for this
financing.
ABOUT GREAT LAKES HYDRO INCOME FUND
Great Lakes Hydro Income Fund produces electricity exclusively from
environmentally friendly hydroelectric resources. The Fund owns, operates and
manages five integrated hydroelectric generation systems located in Ontario,
Quebec, New England and British Columbia comprising 24 hydroelectric
generating stations, with installed capacity of 986 MW and significant water
storage. The facilities generate, on average, 3,700 GWh of electricity
annually, with interconnections to the Quebec, Ontario, British Columbia and
New England power grids, respectively.
Brascan Power, which comprises all the power operations of Brookfield
Asset Management (currently Brascan Corporation), owns 50.1% of the Fund's
outstanding units.
Great Lakes Hydro Income Fund units are listed for trading on the Toronto
Stock Exchange under the symbol GLH.UN.
Note: This news release contains "forward-looking statements" concerning
the Fund's business and operations. The Fund cautions that, by their nature,
forward-looking statements involve risk and uncertainty and the Fund's actual
results could differ materially from those expressed or implied in such
statements. Reference should be made to the Fund's most recent Annual
Information Form for a description of the major risk factors.
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