Northland Power Inc. has entered into a C$1.25 billion corporate credit facility with a syndicate of 12 financial institutions led by Canadian Imperial Bank of Commerce, Bank of Montreal and National Bank Financial.
Based in Toronto, Northland is an independent power producer that develops, builds, owns and operates clean energy facilities. The company owns or has a net economic interest in 2,029 MW of operating generating capacity and 252 MW of generating capacity under construction.
The new credit facility consists of a C$1 billion revolver and C$250 million term loan, and it replaces Northland’s existing C$700 million syndicated credit facility (a C$450 million revolver and C$250 million term loan). The increase in borrowing capacity is largely a result of cash flows generated by Gemini and Nordsee One offshore wind farms, which both began commercial operations in 2017.
The revolver will be used for funding development opportunities and acquisitions; for providing letters of credit to secure obligations that would otherwise be funded in cash; and for general corporate purposes, including working capital. The revolver includes a C$500 million accordion feature that would, if exercised, provide Northland with access to additional revolving credit. The revolver matures in June 2023 and includes annual renewal provisions. The C$250 million term loan matures in December 2019 with an annual renewal provision.
“This new facility confirms the Canadian and international financial community’s confidence in Northland, highlights the quality and stability of our cash flows, and provides a solid foundation to execute on our commitment to growth,” comments Paul Bradley, chief financial officer of Northland.
