/THIS MEDIA RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
MONTREAL, Aug. 23 /CNW Telbec/ - Innergex Renewable Energy Inc.
("Innergex" or the "Corporation") announces today that it will be
issuing 3,400,000 Cumulative Rate Reset Preferred Shares, Series A (the
"Series A Preferred Shares") for aggregate gross proceeds of $85 million
on a bought deal basis to a syndicate of underwriters led by BMO Capital
Markets and TD Securities Inc.
The Series A Preferred Shares will pay cumulative dividends of $1.25 per
share per annum, yielding 5.00% per annum, payable quarterly, for
the initial five year period ending January 15, 2016. The dividend rate
will be reset on January 15, 2016 and every five years thereafter at a
rate equal to the 5-year Government of Canada bond yield plus 2.79%. The
Series A Preferred Shares will be redeemable by Innergex on or after
January 15, 2016, in accordance with their terms.
Holders of the Series A Preferred Shares will have the right, at their
option, to convert their shares into Cumulative Floating Rate Preferred
Shares, Series B, (the "Series B Preferred Shares") subject to certain
conditions, on January 15, 2016 and on January 15 every five years
thereafter. Holders of the Series B Preferred Shares will be entitled to
receive cumulative quarterly floating dividends at a rate equal to the
three-month Government of Canada Treasury Bill yield plus 2.79%.
As stated by Michel Letellier, President and Chief Executive Officer of
Innergex: "With this transaction, Innergex's capital structure is more
diversified and will appeal to a broader investor base". Net proceeds
resulting from the sale of the Series A Preferred Shares will be used by
Innergex to enhance its financial flexibility, to reduce indebtedness
and for general corporate purposes.
The Series A Preferred Shares will be offered for sale to the public in
each of the provinces of Canada pursuant to a short form prospectus of
Innergex to be filed with Canadian securities regulatory authorities in
all Canadian provinces. The offering is scheduled to close on or about
September 14, 2010, subject to certain conditions, including obtaining
all necessary regulatory approvals.
Furthermore, Innergex will be filing a revised Annual Information Form
which takes into account the previously completed combination of the
Corporation with Innergex Power Income Fund.
Innergex Renewable Energy Inc. is a leading developer, owner and
operator of run-of-river hydroelectric facilities and wind energy
projects in North America. Innergex's management team has been involved
in the renewable power industry since 1990. Innergex owns a portfolio of
projects which consists of: i) interests in 17 operating facilities with
an aggregate net installed capacity of 326 MW; ii) interests in 7
projects under development with an aggregate net installed capacity of
203 MW for which power purchase agreements have been secured; and iii)
prospective projects of more than 2,000 MW (net).
In order to inform shareholders
of Innergex as well as potential investors on future prospects of the
Corporation, sections of this news release may contain forward-looking
statements within the meaning of securities legislation
("Forward-looking Statements"). Forward-looking Statements can
generally be identified by the use of words and phrases, such as "may",
"will", "estimate", "anticipate", "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "forecasts", "intends" or
"believes", or variations of such words and phrases that state that
certain events will occur. Forward-looking Statements represent, as of
the date of this news release, the estimates, forecasts, projections,
expectations or opinions of the Corporation relating to future events or
results. Forward-looking Statements involve known and unknown risks,
uncertainties and other important factors which may cause the actual
results or performance to be materially different from any future
results or performance expressed or implied by the Forward-looking
Statements. The material risks and uncertainties which may cause the
actual results and developments to be materially different from the
current expressed expectations in this news release include:
(i) execution of strategy, (ii) capital resources, (iii) derivative
financial instruments, (iv) current economic and financial crisis,
(v) hydrology and wind regime, (vi) construction and design,
(vii) development of new facilities, (viii) project performance,
(ix) equipment failure, * interest rate and refinancing risk,
(xi) financial leverage and restrictive covenants, (xii) separation
agreement and (xiii) relationship with public utilities. Although the
Corporation believes that the expectations instigated by the
Forward-looking Statements are based on reasonable and valid hypotheses,
there is a risk that the Forward-looking Statements may be incorrect.
The reader is cautioned not to rely unduly on these Forward-looking
Statements. The Forward-looking Statements expressed verbally or in
writing, by the Corporation or by a person acting on its behalf, are
expressly qualified by this cautionary statement. The Corporation does
not undertake any obligation to update or revise any Forward-looking
Statements, whether as a result of events or circumstances occurring
after the date hereof, unless required by legislation.
The Series A Preferred Shares have not been, nor will be,
registered under the United States Securities Act of 1933, as amended,
or any state securities laws and may not be offered or sold in the
United States or to U.S. persons absent registration or applicable
exemption from the registration requirement of such Act and applicable
state securities laws. This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be any
sale of these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to qualification under the
securities laws of any such jurisdiction.
SOURCE Innergex Renewable Energy Inc.
For further information: For further information:
Mr. Jean Trudel, MBA
Vice President - Finance and Investor Relations
Innergex Renewable Energy Inc.
Tel: (450) 928-2550, ext. 252
Ms. Edith Ducharme, LL.L.
Director - Financial Communications and Investor Relations
Innergex Renewable Energy Inc.
Tel: (450) 928-2550, ext. 222
Innergex website: www.innergex.com