Renewable Energy Developers Inc. (ReD), formerly Sprott Power, and partner Genera Avante Holdings Canada Inc. report they have refinanced all existing long-term debt of the 62.1 MW Glen Dhu wind farm, located in Nova Scotia.
In November 2012, ReD acquired Canadian developer Shear Wind and its project portfolio, including the Glen Dhu wind farm. ReD and Genera say they have entered into a senior-secured, long-term, non-recourse debt facility of $114.7 million and have put in place a $5.9 million variable rate standby loan facility for the purpose of funding debt service reserve requirements under the debt facility.
According to the partners, the refinancing extends the maturity of Glen Dhu's debt to December 2030, aligning with the remaining term of the Glen Dhu power purchase agreement, and replaces the previous floating rate debt facility with a fully amortizing facility that bears interest at a fixed rate of 5.33%. The imputed interest cost of the prior loan was in excess of 6.0%.
In addition, the companies say the financing is expected to free up significant capital for the partners, approximately $8 million of which is attributable to ReD, thereby reducing its cost of the Shear Wind acquisition. This additional cash will be used to fund the ReD's current contracted development projects, acquisitions and for working capital.