TORONTO, May 17 /CNW/ - Ontario Power Generation Inc. ("OPG" or the
"Company") announced today the financial close of a two-tranche, $475
million private placement bond offering to fund the re-development and
expansion of four hydroelectric generating stations on the lower part
of the Mattagami river in northeastern Ontario.
The Lower Mattagami Energy Limited Partnership ("LMELP") is a limited
partnership between OPG, as the sole general partner, and LM Energy
Inc., a wholly-owned subsidiary of OPG. LMELP reached financial close
of a $225 million private placement issue of senior secured bonds at a
fixed 4.331% annual interest rate, due May 18, 2021, and a $250 million
issue at a fixed 5.139% annual interest rate, due May 18, 2041.
This is the first of several private placement issues of senior secured
bonds that are planned to be used to refinance commercial paper or
other indebtedness, which collectively will complete the forecast $1.9
billion debt financing required for the project.
The re-development and expansion of four hydroelectric generating
stations will utilize available water more efficiently and increase
production of clean and renewable electricity. One additional
generating unit will be added to three existing stations - Little Long,
Harmon and Kipling. The fourth station - Smoky Falls, will be
decommissioned and replaced by a new, three-unit, 267 megawatt ("MW")
generating station. The expanded Lower Mattagami River Complex is
expected to be in-service by June 2015, with a total generating
capacity of 924 MW, an increase of 438 MW.
The re-development and expansion is on schedule. Construction began in
June 2010. About 560 workers are currently employed and cofferdams
have been completed at Little Long and Smoky Falls. Preparations are
underway for similar construction activities at Harmon and Kipling
The bonds received a long-term credit rating of 'A (high)' by Dominion
Bond Rating Service and 'A2' by Moody's. The re-development and
expansion is supported by a long-term Hydroelectric Energy Supply
Agreement with the Ontario Power Authority.
The entities making up the Lower Mattagami River Complex are currently
wholly owned (directly or indirectly) by OPG. The Moose Cree First
Nation has an option to acquire up to 25% of the entity that will own
the expansion assets.
Ontario Power Generation Inc. is an Ontario-based electricity generation
company whose principal business is the generation and sale of
electricity in Ontario. Our focus is on the efficient production and
sale of electricity from our generation assets, while operating in a
safe, open and environmentally responsible manner.
SOURCE Ontario Power Generation Inc.
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