Boralex and Gaz Métro/Valener announce the closing of a C$617.5 million refinancing for Seigneurie
Boralex Inc., Gaz Métro Limited Partnership and Valener Inc. are pleased to announce the closing of a C$617.5 million non-recourse refinancing for Seigneurie de Beaupré Wind Farms 2 and 3 General Partnership (“Wind Farms 2 and 3”), which operates two winds farms located 60 km northeast of Québec City on the private property of Séminaire de Québec. Gaz Métro and Valener indirectly hold interests in Wind Farms 2 and 3 through Beaupré Éole General Partnership.
A special distribution to the partners of Wind Farms 2 and 3 of C$80 million has been declared and is expected to be paid shortly after the closing of the refinancing.“We are pleased we were able to conclude the refinancing on such favourable terms. This reflects the vote of confidence the financial community has in our wind farms,” said Boralex Vice-President and Chief Financial Officer Jean-François Thibodeau and Gaz Métro inc. Executive Vice President, Corporate Affairs and Chief Financial Officer Pierre Despars, acting as Gaz Métro’s general partner and as manager of Valener.
Wind Farms 2 and 3 has been covered by 20-year power purchase agreements with Hydro-Québec since the commissioning of its wind farms.
The total refinancing amount of C$617.5 million, consists of:
a C$383.4 million uncovered tranche of the term loan expiring in December 2032, representing a C$132.3 million increase over the initial tranche and a one year extension of the maturity date;
a C$192.7 million covered tranche of the term loan expiring in December 2029, representing a C$44.5 million decrease and a two year reduction of the maturity date of this tranche;
a C$41.4 million letter of credit facility.
The C$192.7 million tranche of the term loan is covered by a guarantee pledged in favour of the lenders by the Federal Republic of Germany through its export credit agency, Euler-Hermes.
The group of lenders consists of Bank of Tokyo-Mitsubishi (UFJ), KfW IPEX-Bank, Sumitomo Mitsui Banking Corporation, Mizuho Corporate Bank, AKA Bank, DZ
Bank, Laurentian Bank of Canada, Commonwealth Bank of Australia and Crédit Industriel et Commercial.
Cosime Infrastructure and Energy and JCRA Canada Inc. acted respectively as financial advisor and hedging advisor on behalf of Wind Farms 2 and 3.