Alterra gets USD-100m loan for 266 MW of HPP, wind projects

Aug 14, 2014 - Canadian renewables firm Alterra Power Corp (TSE:AXY) secured a CAD-110-million (USD 100m/EUR 75m) credit line to fund its ownership equity for a 62-MW hydropower scheme in British Columbia and a 204-MW wind project in Texas.

The loan facility, which matures on February 5, 2023, was agreed with affiliates of AMP Capital Investors Ltd, Alterra said in a statement yesterday.

The company will own 51% in the Jimmie Creek hydropower plant (HPP) project as in April it agreed to sell a minority stake in it to Fiera Axium Infrastructure Canada II LP. As for the wind farm, Alterra concluded the acquisition of the Shannon project in February and is now in talks to sell a stake in the scheme to “a large energy infrastructure fund”. The renewable energy producer expects to own up to 50% of the 204-MW project once the deal is concluded.

Tranche A of the credit facility, amounting to CAD 67.3 million, will be received this week. The next CAD-21.5-million tranche will be available upon closing of construction financing for the hydro project. Alterra will get the CAD-21.2-million tranche C once construction financing for Shannon has been concluded. The company noted it may use the loan proceeds for other general corporate purposes too.

Alterra operates 568 MW of power capacity, including wind, geothermal and hydropower assets in Canada, the US and Iceland. It owns a 262-MW share of that. Earlier this week the company reported a second-quarter 2014 revenue of USD 16.5 million (EUR 12m), up 9% year-on-year. It turned to a USD-6-million net profit from a loss of USD 2.3 million a year earlier.

(CAD 1 = USD 0.916/EUR 0.685)

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