Canadian Hydro Closes $68 Million Credit Facilities
CALGARY, ALBERTA--(TSX: KHD): Canadian Hydro Developers, Inc.
today announced the closing of $68 million in credit facilities
with National Bank of Canada and The Toronto-Dominion Bank (the
"Lenders"). The credit facilities consist of a revolving
reducing loan in the amount of $52.3 million (the "Loan"),
letters of credit in the amount of $12.7 million, and a treasury
risk line of credit in the amount of $3 million. These
facilities replace existing facilities with the Lenders
consisting of $41.3 million of available debt from combined 364
day credit facilities, $13.7 million in letters of credit, and $1
million from a treasury risk line of credit.
The Loan results in $11 million of additional debt financing,
which will be used to provide funding for the Grande Prairie
EcoPower(TM) Centre (25 MW). Commencement of construction on the
Grande Prairie EcoPower(TM) Centre is contingent upon contracting
an additional 80,000 MWh annually on a long-term basis to a third
party and obtaining a construction line of credit.
The Loan, which is amortized over 15 years, has a rolling two
year term, renewed annually, that consists of a 364 day revolving
period plus an additional one year term. This loan bears
interest at prime plus 0.75%, or at Bankers' Acceptances plus a
stamping fee of 2%, with monthly payments of $295,250 plus
interest. Concurrent with closing, the Company entered into an
interest rate swap arrangement with TD Securities Inc. and
National Bank of Canada to fix the interest rate at 6.77% per
annum on 100% of the debt for the first 5 years and 50% of the
debt in years 6 through 10.
Canadian Hydro is a developer, owner and operator of thirteen
generating facilities: nine "run of river" hydroelectric plants,
three wind plants and one natural gas-fired plant, totalling 88.9
MW net to the Company's interest. In addition, the Pingston
Hydroelectric Plan is currently under construction and
approximately 223 MW are in various stages of permitting for
construction in the next five years. All of the Company's plants
and projects are located in British Columbia, Alberta, and
Ontario. Canadian Hydro's wind and water plants are certified
under the EcoLogo(R) program.
Canadian Hydro Developers, Inc. is committed to the concept of
low-impact power generation. Through its wind and run-of-river
hydro facilities, Canadian Hydro is demonstrating that commitment
to the benefit of the environment and its shareholders. |
