VANCOUVER, June 28, 2017 /CNW/ - Alterra Power Corp. (TSX: AXY) is pleased to announce the expansion of its loan facility with affiliates of AMP Capital Investors Limited. The net proceeds, approximately US$20.6 million, will be used as part of Alterra's sponsor equity contribution for the Flat Top wind project. The expanded facility will be secured by and supported by cash flows from Alterra's projected 51% ownership stake in the Flat Top project, in addition to security and cash flow support the facility currently receives from Alterra's interests in the Toba Montrose, Jimmie Creek and Dokie projects. The loan expansion will fund in conjunction with the completion of the Flat Top project financing, which Alterra expects to occur within the next few weeks. Alterra also expects to sell down a 49% interest in the project to a sponsor-partner.
The 200 MW Flat Top project, located in central Texas is contracted to sell the majority of its power under a 13-year power hedge with an affiliate of Citi. The project has previously contracted with affiliates of Vestas-American Wind Technology, Inc. for turbine supply and maintenance and Blattner Energy, Inc. for construction services. The project is expected to achieve commercial operations in the first half of 2018.
About Alterra Power Corp.
Alterra Power Corp. is a global renewable energy company that manages eight power plants totaling 825 MW of hydro, wind, geothermal and solar generation capacity in Canada, the USA and Iceland. Alterra owns a 385 MW share of this capacity, generating over 1,700 GWh of clean power annually. Alterra also has an extensive portfolio of development projects and a skilled team of developers, builders and operators to support its growth plans.
Alterra 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 applicable 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 successful development and financing (including construction debt, tax equity and sponsor interest sales) of the Flat Top project, successful achievement of the Flat Top financial closing (and effectiveness of the power hedge), release of the AMP loan facility expansion funds, and commercial operations for the Flat Top project and prospective generation. Forward-looking information is based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection. 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 whether the actual power generation from our operations meets our projections; the success and timely completion of financing efforts (including construction debt, tax equity and sponsor interest sales) of the Flat Top project; the success and timely completion of planned development and construction efforts at the Flat Top project; Alterra's ability to successfully satisfy the conditions precedent to the Flat Top project financing, power hedge and the AMP loan facility expansion; the timeline for development, financing, construction and commercial operations of the Flat Top project; as well as others 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, 2016. 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, subsequently or otherwise.
SOURCE Alterra Power Corp.
For further information: Peter Lekich, Corporate Communications, Alterra Power Corp., 604-235-6719, [email protected]