MONTREAL, Aug. 6, 2013 /PRNewswire/ - Boralex Inc. ("Boralex" or the "Corporation") (TSX: BLX) has closed financing for the Jamie Creek hydroelectric project in Canada and, through its subsidiary Boralex Europe S.A., for the Vron wind power project in France.
"The closing of these two financing arrangements is further recognition of the quality of the projects we develop and the capital market's trust in Boralex to successfully complete the construction of both hydroelectric and wind power assets," stated Boralex President and CEO Patrick Lemaire.
The long-term financing of the 22 MW Jamie Creek hydroelectric power station located near Gold Bridge, British Columbia, is provided by Canada Life Assurance Company and Great West Life Assurance Company for a total amount of $55.3 million, representing approximately 85% of estimated project costs. The Corporation was advised by TD Securities Inc. for completion of the transaction.The loan will enjoy a nine-year grace period for repayment of principal and be amortized thereafter over a 31-year period at a rate of approximately 5.42% for the full term of the loan. Construction at the Jamie Creek site is currently underway, with commissioning planned for the first quarter of 2014. To date, construction is on schedule and on target to its initial budget. VRON The long-term financing for the 8 MW Vron wind farm is provided by SAAR LB, a German bank. The total amount of the financing will be nearly €14 million ( $19 million), or approximately 82% of the total project costs, excluding certain short-term advances related to the payment of sales taxes. Amortized over a 15-year period, the loan will bear interest at a rate of approximately 4% for the full term of the loan.