Boralex and Gaz Métro/Valener close C$617.5 M refinancing for Seigneurie de Beaupré Wind Farms 2 and 3

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Boralex and Gaz Métro/Valener close C$617.5 M refinancing for Seigneurie de Beaupré Wind Farms 2 and 3

Boralex, Gaz Métro Limited Partnership and Valener have closed a C$617.5 million (US$598.4 million) non-recourse refinancing for Seigneurie de Beaupré Wind Farms 2 and 3 General Partnership (Wind Farms 2 and 3).

Wind Farms 2 and 3 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.

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. 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 Seigneurie de Beaupré Wind Farms, with a total contracted capacity of 364 MW, currently constitute one of Canada's largest wind power projects. The first phase of 272 MW (Farms 2 & 3), commissioned in late 2013, and the second phase of 68 MW (Farm 4), started operating in December 2014 , are projects of the Boralex and Gaz Métro|Valener consortium. Furthermore, the 23.5 MW Côte-de-Beaupré wind farm built in partnership by Boralex and the Côte-de-Beaupré RCM started its operations in November 2015 .

The wind farms has been covered by 20-year power purchase agreements with Hydro-Québec since the commissioning.

Cosime Infrastructure and Energy and JCRA Canada Inc. acted respectively as financial advisor and hedging advisor on behalf of Wind Farms 2 and 3.

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