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Northland Power Announces Pricing of Solar Project Bonds

October 03, 2014

TORONTO, ONTARIO--(Marketwired - Oct. 3, 2014) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OR ITS POSSESSIONS. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Northland Power Inc. ("Northland") (TSX:NPI)(TSX:NPI.PR.A)(TSX:NPI.PR.C)(TSX:NPI.DB.A)(TSX:NPI.DB.B) today announced the pricing of $232 million in project bonds to be issued by its wholly-owned subsidiary, Northland Power Solar Finance One L.P., which are non-recourse to Northland but are backed by Northland's six Ground-Mounted Solar Phase I projects located across Ontario, Canada. Northland Power Solar Finance One L.P. has entered into an agency agreement with a syndicate of investment dealers related to the Canadian private placement offering of 4.397% senior secured amortizing Series A bonds which is expected to close on October 8, 2014, subject to customary conditions. The bonds have been provisionally rated BBB (high) by DBRS and will be fully amortized by their maturity in June 2032.

"This marks the third time Northland subsidiaries have issued project bonds, and is our first issuance backed by renewable power assets. We are very pleased with the continued strong interest shown by the financial community and the creation of value this financing brings to Northland" said Paul Bradley, Chief Financial Officer of Northland.

Upon closing, the proceeds will be transferred via intercompany loans to the six Ground-Mounted Solar Phase I projects, each a wholly-owned subsidiary of Northland, and then used to repay existing bank debt, settle associated interest rate swaps, and pay transaction costs; the remainder will be distributed to Northland for general corporate purposes. The private placement offering has been co-led by Scotia Capital Inc. and CIBC World Markets Inc.; the dealer syndicate also includes BMO Nesbitt Burns Inc., National Bank Financial Inc. and Casgrain & Company Limited.

The six Solar Phase I projects each own and operate a 10 MW ground-mounted solar facility, comprising 60 MW in aggregate. The solar facilities were developed by Northland and began commercial operations between June and September 2013. The facilities sell all electricity to the Ontario electricity grid under 20-year Feed-in Tariff Contracts with the Ontario Power Authority.

ABOUT NORTHLAND

Northland is an independent power producer founded in 1987, and publicly traded since 1997. Northland develops, builds, owns and operates facilities that produce 'clean' (natural gas) and 'green' (wind, solar, and hydro) energy, providing sustainable long-term value to shareholders, stakeholders, and host communities.

The company owns or has a net economic interest in 1,335 MW of operating generating capacity; 650 MW (410 MW net to Northland) of generating capacity under construction, including a 60% equity stake in Gemini, a 600 MW (360 MW net to Northland) offshore wind project in the North Sea near the Netherlands; and 456 MW (348 MW net to Northland) of projects with awarded power contracts under advanced development, including an 85% equity stake in Nordsee One, a 332 MW (282 MW net to Northland) offshore wind project in the North Sea near Germany. Northland's cash flows are diversified over four geographically separate regions and regulatory jurisdictions in Canada and Europe.

Northland's common shares, Series 1 and Series 3 preferred shares and convertible debentures trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A, NPI.PR.C, NPI.DB.A and NPI.DB.B, respectively.

The offer and sale of the bonds have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or applicable state laws, and the bonds may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The bonds have not been and will not be qualified for sale to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the bonds in Canada will be made on a basis exempt from the prospectus requirements of such securities laws.

This press release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, the bonds. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such an offer, solicitation, purchase or sale would be unlawful.

FORWARD-LOOKING STATEMENTS

This release contains certain forward-looking statements which are provided for the purpose of presenting information about management's current expectations and plans. Readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects," "anticipates," "plans," "believes," "estimates," "intends," "targets," "projects," "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may," "will," "should," "would" and "could." These statements may include, without limitation, expectation of the closing of the offering, statements regarding future EBITDA, cash flows and dividend payments, the construction, completion, attainment of commercial operations, cost and output of development projects, plans for raising capital, and the future operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of Northland and its subsidiaries. These statements are based upon certain material factors or assumptions that were applied in developing the forward-looking statements, including the design specifications of development projects, the provisions of contracts to which Northland or a subsidiary is a party, management's current plans, its perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. Although these forward-looking statements are based upon management's current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties. Some of the factors that could cause results or events to differ from current expectations include, but are not limited to, construction risks, counterparty risks, operational risks, the variability of revenues from generating facilities powered by intermittent renewable resources and the other factors described in the "Risks and Uncertainties" section of Northland's 2013 Annual Report and Annual Information Form, both of which can be found at www.sedar.com under Northland's profile and on Northland's website www.northlandpower.ca. Northland's actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur.

The forward-looking statements contained in this release are based on assumptions that were considered reasonable on October 3, 2014. Other than as specifically required by law, Northland undertakes no obligation to update any forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Northland Power Inc.
Barb Bokla
Manager, Investor Relations
647-288-1438

Northland Power Inc.
Adam Beaumont
Director of Finance
647-288-1929
(416) 962-6266 (FAX)
investorrelations@northlandpower.ca
www.northlandpower.ca

Northland Power
Management Information Circular

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