MONTREAL, Oct. 5 /CNW Telbec/ - Boralex Inc. ("Boralex" or the "Corporation") announces today that it has arranged financing with BNP Paribas for its new wind farm in France. This acquisition, subject to closing conditions, was announced earlier on July 16, 2009.
The total investment amounts to C$25.1 million ((euro)15.9 million). Under the master credit agreement concluded in June 2007, about C$20.3 million ((euro)12.8 million) is immediately available to finance the project. The financing obtained represents more than 80% of the total investment and provides Boralex with access to funds for a 15-year period, at an average interest rate of about 5%.
This 9.2 MW wind farm located in the department of the Somme nearby sites already operated by Boralex will have four Enercon E82 wind turbines, each with a capacity of 2.3 MW. Start-up is scheduled for the second quarter of 2010. All of the power produced will be sold to Électricité de France under 15-year contracts.
"This acquisition and the arrangement of financing clearly demonstrates our ability to take advantage of current market opportunities and obtain the funds required to develop interesting projects," said Patrick Lemaire, President and Chief Executive Officer of Boralex Inc.
Boralex is a major private electricity producer whose core business is the development and operation of power stations that generate renewable energy.
Employing over 300 people, the Corporation owns and operates 22 power stations with a total installed capacity of 365 MW in Canada, in the Northeastern United States and in France. In addition, the Corporation has more than 300 MW of power projects under development. Boralex is distinguished by its diversified expertise and in-depth experience in three power generation segments - wind, hydroelectric and thermal. Boralex shares are listed on the Toronto Stock Exchange under the ticker symbol BLX.
Boralex also holds a 23% interest in Boralex Power Income Fund, which has 10 power stations with a total installed capacity of 190 MW in Québec and the United States. These sites are managed by Boralex.
More information is available at www.boralex.com or www.sedar.com.
Certain statements in this release, including those regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions on market and industry, increases in raw material costs, changes in the relative values of certain currencies, fluctuations in selling prices, and other factors listed in the Company's filings with different securities commissions.
The summarized financial statements included in this press release also contain certain financial measurements that are not recognized as Generally Accepted Accounting Principles of Canada (GAAP). To assess the operating performance of its assets and reporting segments, the Corporation uses Earnings before interest, taxes, depreciation and amortization (EBITDA) and Cash flows from operations as performance measurements. These measures are not in accordance with GAAP and do not have a standardized definition prescribed by GAAP. Therefore, they may not be comparable to similar measures presented by other companies. EBITDA is defined in the summarized financial statements included with this press release. Cash flows from operations corresponds to cash flows from operating activities before changes in non-cash working capital items as disclosed in the consolidated statements of cash flows attached in this press release.
SOURCE Boralex Inc.
For further information: For further information: Ms. Sophie Paquet, Communications Advisor, Boralex Inc., (514) 985-1353, email@example.com