VANCOUVER, Dec. 19, 2014 /CNW/ - Alterra Power Corp. (TSX: AXY) announces it has received C$22.5 million of funds related to Tranche B of its previously announced C$110 million holding company loan facility. The funds will be used as part of Alterra's equity capital for the Shannon wind project, which is projected at approximately US$45 million. The third tranche of the loan facility (US$20.3 million) is expected to be drawn in the first quarter of 2015, concurrently with the Shannon project financing.
Alterra has also executed an interest rate hedge with a third-party financial institution to swap the majority of the loan facility's floating-rate obligations for fixed-rate obligations. The hedge locks in a fixed interest rate of approximately 8.75% for the full term of the loan.
About Alterra Power Corp.
Alterra Power Corp. is a leading global renewable energy company, operating six power plants totaling 568 MW of generation capacity, including British Columbia's largest run-of-river hydro facility and largest wind farm, two geothermal facilities in Iceland, and a geothermal plant in Nevada. Alterra owns a 262 MW share of this capacity, generating approximately 1,300 GWh of clean power annually. Alterra has an extensive portfolio of exploration and development projects and a skilled international team of developers, explorers, builders and operators to support its growth plans.
The company trades on the Toronto Stock Exchange under the symbol AXY and OTC in the United States as MGMXF.
Cautionary Note Regarding Forward-Looking Information
Certain statements and information included in this news release are "forward-looking information" within the meaning of Canadian securities laws that involve risks and uncertainties. Forward-looking information relates to future events or future performance and reflects management's expectations and beliefs regarding future events as of the date hereof. Examples of forward-looking information in this news release include the use of proceeds, the timing for funding and ability to satisfy conditions precedent thereto for Tranche C of the holding company financing, and timing and certainty on financial closing and Alterra's portion of the equity required for the Shannon wind project. Forward-looking information is based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection, including assumptions based on historical trends, current conditions and expected future developments. Since forward-looking information relates to future events and conditions, by its very nature it requires making assumptions and involves inherent risks and uncertainties. Alterra cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking information. Material risk factors and assumptions include those set out in the management's discussion and analysis section of Alterra's most recent annual and quarterly reports and in Alterra's Annual Information Form for the year ended December 31, 2013. Although Alterra has attempted to identify important factors that could cause actual actions, events or results to differ materially from forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate and undue reliance should not be placed on forward-looking information. Except as required by law, Alterra undertakes no obligation to update any forward-looking information to reflect new information, subsequent or otherwise.
SOURCE: Alterra Power Corp.
For further information: Peter Lekich, Corporate Communications, Alterra Power Corp., Phone: 604.235.6719, Email: [email protected]