Northland agrees new, bigger credit facility

Canada-based Northland Power Inc (TSE:NPI) said Friday it has agreed a CAD-1.25-billion (USD 941m/EUR 808m) corporate credit facility with a syndicate of 12 financial institutions, which replaces its existing CAD-700-million syndicated credit facility.

The syndicate of lenders is led by Canadian Imperial Bank of Commerce, Bank of Montreal and National Bank Financial.

The new credit facility is made up of a CAD-1-billion revolver and a CAD-250-million term loan, while the previous facility included a CAD-450-million revolver and CAD-250-million term loan. The clean power company said the increase in borrowing capacity is mainly due to cash flows generated by the 600-MW Gemini offshore wind park in the Netherlands and the 332-MW Nordsee One wind farm in the German North Sea, which started operations in 2017. It will use the revolver to fund development opportunities and acquisitions, provide letters of credit to secure obligations and for general corporate purposes.

The revolver, which includes a CAD-500-million accordion feature, matures in June 2023 and has annual renewal provisions. The maturity of the term loan is in December 2019 and there is an annual renewal provision.

On Friday, Northland, along with its partner Yushan Energy Co Ltd, won 744 MW of capacity in an offshore wind auction in Taiwan.

(CAD 1 = USD 0.753/EUR 0.646)

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