Boralex Inc. announces $125m signs deal for convertible unsecured subordinated debentures

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Boralex Inc. announces $125m signs deal for convertible unsecured subordinated debentures

Boralex Inc., a power producer whose core business is dedicated to the development and the operation of renewable energy power stations, has announced it has entered into an agreement with National Bank Financial Inc., on behalf of a syndicate of underwriters, pursuant to which the underwriters have agreed to purchase, on a bought deal basis, convertible unsecured subordinated debentures of Boralex in an aggregate principal amount of $125 million.

Boralex is known for its diversified expertise and in-depth experience in four power generation types — wind, hydroelectric, thermal and solar. Currently, the firm operates in Canada, France and the United States an asset base with a capacity of more than 1,110 MW, of which over 950 MW are under its control.

The firm will use the proceeds of the offering to repay indebtedness outstanding under its revolving credit facility. The remainder of the net proceeds of the Offering, as well as the funds available under the revolving credit facility, will be used by the corporation to fund future acquisitions, capital projects and for general corporate purposes.

The debentures will bear interest at a rate of 4.50% per annum, payable semi-annually on June 30 and December 31 each year, commencing on December 31, 2015. The debentures will be convertible at the holder’s option into Class A shares of Boralex at a conversion price of $19.60 per share, representing a conversion rate of 51.02 Common Shares per $1,000 principal amount of Debentures.

Boralex has also granted an over-allotment option to the underwriters of the offering, entitling them to purchase, for a period of 30 days from the closing of the Offering a certain amount of additional debentures.

Boralex said it will file a preliminary short form prospectus in all provinces of Canada by June 8, 2015. The prospectus offering is subject to all standard regulatory approvals, including that of the Toronto Stock Exchange, and is expected to close on or about June 22, 2015.

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.