/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
LONGUEUIL, QC, Dec. 6 /CNW Telbec/ - Innergex Power Income Fund (IEF.UN)
(the "Fund") announced today that it has completed the acquisition of a
38% interest in the 109.5-MW Baie-des-Sables wind farm and a 38% interest in
the 100.5-MW Anse-à-Valleau wind farm (the "Transaction").
- Increase the distribution by 3.5cents per unit to $1.00, on an
annualized basis, starting as of January 1, 2008;
- Increase the Fund's total net installed capacity by 68%, or 79.8 MW,
from 117.2 MW to 197 MW;
- Increase the anticipated net annual production by 37%, or 226.6 GW-hr,
to 835 GW-hr;
- Increase the 2008 anticipated revenues by 44%, from $41 million to
approximately $59 million, and 2008 anticipated EBITDA by 49%, from
$31.5 million to approximately $47 million;
- Increase in the Fund's hydrology/wind reserve by approximately
$2.2 million to $10.8 million;
- Increase in the amount invested annually in the major maintenance
reserve of $0.4 million;
- Increased diversification in terms of energy sources; and
- Mitigate the effect of seasonality on the Fund's cash flows.
The Baie-des-Sables wind farm is located near Matane in the province of
Québec. It is a 109.5-MW wind farm of which the Fund has acquired a 38%
financial interest. The facility benefits from a long-term Power Purchase
Agreement ("PPA") with a term of 20 years with Hydro-Québec, expiring in 2026.
The facility was commissioned in November 2006, and is expected to produce
298.3 GW-hr annually (113.4 GW-hr net interest). For the first 9 months of
2007, the Baie-des-Sables wind farm performed 13.8% above its forecasted
long-term average due to winds proportionately stronger than expected for that
The Anse-à-Valleau wind farm is located in Gaspé, in the province of
Québec. It is a 100.5-MW wind farm of which the Fund has acquired a
38% financial interest. The facility benefits from a long-term PPA with a term
of 20 years with Hydro-Québec, expiring in 2027. The facility was commissioned
in November 2007, and is expected to produce 298 GW-hr annually (113.2 GW-hr
The Fund financed the acquisition price of $172.9 million by issuing
4,724,409 units to the vendor, representing an amount of $61.7 million, by
assuming $108.0 million in non-recourse debts and by increasing the Fund's
debt by $3.2 million. The interest rate risk of such debts is mitigated by way
of derivative instruments. The trusts units issued for the purpose of the
Transaction are now held by Innergex Renewable Energy Inc., the Manager of the
Fund, which therefore owns 16.1% of the Fund's outstanding units.
In connection with the Transaction, the Fund has agreed to certain
amendments, effective today, to its management agreements with its Manager,
including: i) the extension of their initial terms from 2023 to 2030; and ii)
mutual rights to terminate the agreements upon certain events and provided
that a cash compensation is paid to the Manager.
"The Fund is now producing electricity from wind thanks to two high
qualities assets. The addition of the Baie-des-Sables and the Anse-à-Valleau
wind farms to the Fund's portfolio brings an energy source and geography
diversification and will generate a near 4% increase in distributions per unit
to unitholders starting in January 2008. The production from these two wind
farms will complement the production from the hydroelectric facilities since
the production peaks of the hydroelectric and the wind facilities occur at
different moments in the year", remarked Jean La Couture, Chairman of the
Board of Trustees of Innergex Power Trust.
Innergex Power Income Fund is an open-ended income trust that indirectly
owns interests in ten hydroelectric power generating facilities and two wind
farms with a total installed capacity of 339.9 MW (net interest of 197 MW).
The Fund's units are traded on the Toronto Stock Exchange under the symbol
IEF.UN. The hydroelectric facilities and the wind farms are operated and
managed by Innergex Renewable Energy Inc., the Manager, under long-term
agreements with the Fund.
Innergex Renewable Energy Inc. (formerly known as Innergex Management
Inc.) is a public corporation traded on the Toronto Stock Exchange under the
symbol INE. The corporation provides management and administrative services to
the Fund as well as owns and oversees the valorization and operation of
operating, (8 MW), under development (565 MW) and prospective (1638 MW)
projects. The team at Innergex Renewable Energy Inc. has been engaged in the
development, construction, acquisition, ownership, and operation of
hydroelectric power plants since 1990 and wind farms since 2000.
Investors should note that some statements in this press release are
forward-looking and may not give full weight to all potential risks and
uncertainties. Forward-looking statements are, by their nature, subject to
risks and uncertainties, and actual results, actions or events could
materially differ from those set forth in the forward-looking statements. All
forward-looking statements are only valid as of the date they were made. The
Fund does not undertake to update forward-looking statements.
For further information:
For further information: Mr. Jean Trudel, MBA, Vice-President - Finance
and Investor Relations, Innergex Renewable Energy Inc., as Manager of the
Fund, (450) 928-2550, ext. 252; Mr. Michel Letellier, MBA, President and Chief
Executive Officer, Innergex Renewable Energy Inc., as Manager of the Fund,
(450) 928-2550, ext. 227; firstname.lastname@example.org; www.innergex.com