Northland Power pockets USD 784m to back new investments

Canadian power producer Northland Power Inc (TSE:NPI) has raised CAD 990 million (USD 783.8m/EUR 652.9m) gross from a bought deal equity offering aimed at supporting up to 5 GW of identified acquisitions and a recently announced renewable portfolio purchase in Spain.

As part of the placement, Northland Power sold 22.5 million common shares, including two million shares through the underwriters’ over-allotment option, it announced on Wednesday, The stock was offered a price of CAD 44 apiece.

The raised net proceeds will be earmarked for covering the cash component of Northland Power’s acquisition of 424 MW of onshore wind, 66 MW of solar photovoltaic (PV) and 50 MW of concentrated solar power (CSP) plants in operation in Spain. The assets will be bought for EUR 345 million in cash upon and the assumption of non-recourse fixed-rate debt totalling EUR 716 million in a deal that will mark the Canadian firm's entry in Spain.

Northland Power intends to allocate the remaining funds from the equity offering to meet equity capital requirements, among which is the acquisition of a 49% interest in a Polish offshore wind project, and to finance the purchase of a 4 GW - 5 GW renewable development pipeline that it identified earlier this year.

Some funds will go to repay borrowings under an existing revolving credit facility.

(CAD 1.0 = USD 0.791/EUR 0.659)

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