October 1 (Renewables Now) - Canada’s Innergex Renewable Energy Inc (TSE:INE) has finalised its recent offering of convertible debentures, securing CAD 125 million (USD 94.3m/EUR 86.6m) to fund development projects and repay debt, it said on Monday.
The renewable power producer currently has almost 2 GW of installed capacity in Canada, the US, France and Chile, including 37 hydropower plants, 25 wind farms and four solar parks. It will use fresh proceeds to prepay debt under an existing revolving credit facility, finance new projects and other growth opportunities, as well as for general corporate purposes.
Under the transaction, Innergex placed convertible unsecured subordinated debentures on a bought deal basis at CAD 1,000 apiece, with an interest of 4.65% per year and maturity on October 31, 2026. Each holder of debentures will have the right to convert them into Innergex common shares at a price of CAD 22.90 per share, representing a conversion rate of 43.6681 common shares per CAD 1,000 principal amount of debentures. Interest payments will start on April 30, 2020, while redemption will not be possible before October 31, 2022.
The underwriters of the offering, led by TD Securities Inc, CIBC Capital Markets, BMO Capital Markets and National Bank Financial Inc, were granted a 30-day over-allotment option to buy an additional CAD 18.75 million worth of debentures at the same offering price.
The debentures are already trading on the Toronto stock exchange under the symbol “INE.DB.C.”
(CAD 1.0 = USD 0.755/EUR 0.693)