CIBC, BMO Lead Northland Power Facility Amendment
Northland Power announced it completed an amendment to its corporate credit facility with a syndicate of financial institutions led by Canadian Imperial Bank of Commerce and the Bank of Montreal.
The credit facility was increased from $250 million to $600 million, and is comprised of a $350 million revolving facility and a $250 million term facility. The revolving facility is available for general corporate purposes and working capital, which accommodates issuances of letters of credit, support of growth and development opportunities. The term facility will be used to complete funding Northland’s investment in Project Gemini. The credit agreement also incorporates a $100 million accordion feature which provides Northland with access to additional revolving credit if required.
The amended credit facility benefits from lower borrowing rates and allows for Canadian dollar, U.S. dollar and euro-denominated borrowings to support Northland’s international growth activities. The maturity of the revolving facility has been extended from May 2015 to March 2019, with further annual renewal options; the maturity of the term facility is March 2018 with a 1 year renewal option.
Northland CFO Paul Bradley commented, “This amendment confirms the financial community’s confidence in Northland, and reflects the quality and stability of Northland’s cash-flows, our continued success in bringing projects into operation on-time and on-budget, and our commitment to growth particularly with our sponsorship of the 600 MW Project Gemini in the North Sea.”
The syndicate of banks underwriting Northland’s credit facility has increased from nine to 11 and comprises both Canadian and international lenders.
Northland is an independent power producer, founded in 1987, and publicly traded since 1997.