Renewable Energy Developers Inc. and Genera Avante Holdings Canada Inc. Complete Refinancing of Glen Dhu Wind Project
TORONTO, July 24, 2013 /CNW/ - Renewable Energy Developers Inc. (TSX:RDZ) (TSX:RDZ.DB) ("ReD" or "the Company"), a developer, owner and operator of renewable energy projects, with its partner, Genera Avante Holdings Canada Inc., today announced it has refinanced all existing long term debt of the 62.1 Megawatt ("MW") Glen Dhu wind farm ("Glen Dhu"), the largest wind farm in Nova Scotia.
The partners have entered into a senior secured, long term, non-recourse debt facility (the "Facility") of $114.7 million, and have put in place a $5.9 million variable rate standby loan facility for the purpose of funding debt service reserve requirements under the Facility.
The refinancing extends the maturity of Glen Dhu's debt to December 2030, aligning with the remaining term of the Glen Dhu power purchase agreement, and replaces the previous floating rate debt facility with a fully amortizing facility that bears interest at a fixed rate of 5.33%. The imputed interest cost of the prior loan was in excess of 6.0%.
In addition, the financing is expected to free up significant capital for the partners, approximately $8.0 million of which is attributable to ReD, thereby reducing its cost of the Shear Wind acquisition. This additional cash will be used to fund the Company's current contracted development projects, acquisitions and for working capital.
"This new agreement fully protects ReD from rising interest rates, provides it with additional cash and increases the internal rate of return on the project," said Jeff Jenner, Chief Executive Officer of ReD. "We appreciate the trust of our partner throughout this process."
The syndicated Facility was arranged by Stonebridge Financial Corporation.
About Renewable Energy Developers Inc.
ReD is dedicated to the development, ownership and operation of renewable energy projects. Through project development efforts, acquisitions, partnerships and joint ventures, ReD provides its shareholders with income and growth from the renewable power generation sector of the energy industry. On July 3, 2013 the Company announced a definitive agreement with Capstone Infrastructure Corporation (TSX: CSE; CSE.PR.A; CSE.DB.A - "Capstone") whereby Capstone will acquire all the outstanding shares of ReD by way of a share exchange (the "Transaction"). The Transaction will result in a larger infrastructure company with power generation facilities across Canada totaling approximately net 465 MW of installed capacity, an attractive pipeline of contracted development opportunities in Canada representing net 79 MW of capacity, and international investments in regulated water and district heating businesses.
Certain information contained in this press release may constitute "forward-looking information" which reflects the current expectations of ReD. This information reflects ReD's current beliefs with respect to future events and is based on information currently available to management. Forward-looking information involves significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking information, including the risks listed under the heading "Risk Factors" in the Company's Revised Annual Information Form dated April 2, 2013. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information contained in this release. Although forward-looking information contained in this release is based upon what ReD believes to be reasonable assumptions, management cannot assure investors that actual results, performance or achievements will be consistent with this forward-looking information. The forward-looking information is made as of the date of this release and ReD does not assume any obligation to update or revise it to reflect new events or circumstances, except as required by law.
SOURCE Renewable Energy Developers Inc.For further information:
Jeff Jenner, CA, CBV
President and Chief Executive Officer
Renewable Energy Developers Inc.
(416) 815 0700 ext. 238