Boralex Inc. (“Boralex” or the “Corporation”) (BLX) announces the closing of a project financing totalling $81.4 million for the Frampton community wind farm.
Financing for the 24MW wind farm, located in the Frampton municipality in the Chaudière-Appalaches region, consisted of:
- a C$73.5 million construction loan, to be converted into a term loan with an 19.5-year term after the beginning of commercial operations; and
- short-term credit facilities, including bridge financing and a letter of credit facility, totalling C$7.9 million, for purposes of financing certain costs incurred during construction that are reimbursable by Hydro-Québec and issuing various letters of credit.
The Frampton wind farm is a community wind power project under a partnership between the Frampton Municipality (33.3%) and Boralex (66.7%) consisting of 12 Enercon E-82 wind turbines, which is covered by a 20-year power purchase agreement with Hydro-Québec. Commissioning of the wind farm is expected by December 2015 and construction is progressing according to the established budget and schedule.
The financing agreement was contracted with National Bank of Canada as lead arranger and sole bookrunner. Along with the investments and the commitments undertaken by Boralex and its partner, the project is fully financed.
Boralex is a power producer whose core business is dedicated to the development and the operation of renewable energy power stations. With about 250 employees, Boralex is known for its diversified expertise and in-depth experience in four power generation types — wind, hydroelectric, thermal and solar. Currently, the Corporation 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. Boralex is also developing, both independently and with partners, a number of energy projects of over 150 MW of power will be commissioned by the end of 2017. Boralex’s shares and convertible debentures are listed on the Toronto Stock Exchange under the ticker symbols BLX and BLX.DB, respectively.