MONTREAL, Sept. 21 /CNW Telbec/ - Boralex Inc. ("Boralex" or the "Corporation") announces that it has concluded a financing for the 4.6 MW expansion of the Cham de Cham Longe wind farm site. The financing is covered under the master agreement signed in June 2007, from which an amount of about $8.7 million (euro 5.5 million) will be drawn once certain conditions relative to the borrowing are met within the next few days. Note that this financing covers more than 82% of the total investment and guarantees that Boralex will have access to funds for a 15-year period at an average rate of 5%. Construction is already underway at the site and commercial operation is scheduled to start in November 2009.
Note that Boralex acquired 51% of the shares of Boralex Cham Longe II S.A.S, which owns the rights to build and operate this wind farm. Furthermore, Boralex plans to exercise a purchase option on non-controlling interests in 2010.
The wind farm will have two Enercon turbines of 2.3 MW each. All of the power produced will be sold to Électricité de France under a 15-year contract. The land leases are for an initial period of 30 years and are renewable at the Corporation's request for an additional 30 years.
"To date, Boralex still has financing capacity of close to 145 million euros for wind farm projects in France until December 31, 2010. Boralex is pursuing its growth strategy in France by acquiring excellent sites," said Patrick Lemaire, President and Chief Executive Officer of Boralex.
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, firstname.lastname@example.org