TORONTO, May 13 /CNW/ - Ontario Power Generation Inc. ("OPG" or the
"Company") announced today the financial close of a $200 million private
placement issue to fund the re-development of four hydroelectric generating
stations that have reached the end of their service lives.
UMH Energy Partnership (UMH) reached financial close of a $200 million
private placement issue of senior secured bonds, due 2041. UMH is a general
partnership between OPG (99.9%) and UMH Energy Inc. (0.1%), a wholly owned
subsidiary of OPG. The bonds received an 'A2' rating by Moody's Investor
Services and an 'A' rating by Standard & Poor's Rating Services. The financing
was arranged by Scotia Capital Inc. and TD Securities Inc.
The $200 million private placement completes the financing required for
this project, together with $100 million provided by OPG through its
The financing will fund the re-development of four hydroelectric
generating stations that have reached the end of their service lives. Three of
the generating stations are on the Upper Mattagami River (Wawaitin, Sandy
Falls and Lower Sturgeon) and the fourth (Hound Chute) is located on the
Montreal River. Construction of these facilities is scheduled to be complete
by December 2010, resulting in a 21 megawatt ("MW") increase in generation
capacity to 44 MW.
The re-development project is supported by a Hydroelectric Energy Supply
Agreement with the Ontario Power Authority.
UMH Energy Partnership was formed for the purpose of acquiring, owning,
redeveloping, operating, and maintaining certain run-of the river
hydroelectric facilities owned by OPG located on the Upper Mattagami River and
on the Montreal River.
Ontario Power Generation Inc. is an Ontario-based electricity generation
company whose principal business is the generation and sale of electricity in
Ontario. Our focus is on the efficient production and sale of electricity from
our generation assets, while operating in a safe, open and environmentally
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