TORONTO, ON--(Marketwired - August 17, 2017) - Pursuant to the agreement to purchase that was announced on March 3, 2017, Northland Power Inc. ("Northland") (TSX: NPI) (TSX: NPI.PR.A) (TSX: NPI.PR.B) (TSX: NPI.PR.C) (TSX: NPI.DB.B) (TSX: NPI.DB.C) today announced that it has completed the acquisition of 100% of the shares of British Wind Energy GmbH, which owns the Deutsche Bucht offshore wind project, from Highland Group Holdings Ltd. ("Highland").
The 252 MW Deutsche Bucht project ("DeBu") is Northland's third offshore wind project. It will be located 95 km northwest of the island of Borkum in the German Exclusive Economic Zone. The total estimated project cost is approximately EUR1.3 billion (approximately CAD $1.9 billion). Northland expects to invest approximately $400 million of corporate funds, sourced from cash on hand and corporate liquidity. The balance of the project cost will be funded with non-recourse project finance debt and pre-completion revenues. As of the time of the share acquisition, approximately EUR205 million of Northland's funds have been irrevocably committed to DeBu, with the balance expected to be committed at financial close.
As previously announced, the project is investigating the development of two additional demonstration turbines utilizing suction bucket foundations. The final investment decision for these two turbines is subject to achieving certain development milestones. If built, they will contribute an additional 17 MW of capacity, and bring the total project cost to approximately EUR1.4 billion (CAD $2.0 billion). Northland's investment would increase to approximately $425 million, funded by cash and corporate debt, with the balance of incremental costs funded by additional project debt.
DeBu is currently in an advanced stage of development. The project remains subject to financial close, which is expected shortly, at which time all debt and equity required for the project is to be committed. Construction is expected to begin shortly after financial close, with project completion anticipated by the end of 2019.
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 1,754 MW of operating generating capacity and 332 MW of generating capacity under construction -- the Nordsee One offshore project in the North Sea, of which the Company owns 85% -- in addition to its 100% equity stake in DeBu.
Northland's common shares, Series 1, Series 2 and Series 3 preferred shares and Series B and Series C convertible debentures trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A, NPI.PR.B, NPI.PR.C, NPI.DB.B, and NPI.DB.C, respectively.
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, statements regarding future adjusted EBITDA, free cash flows, dividend payment and dividend payout ratios, the construction, completion, attainment of commercial operations, cost and output of development projects, litigation claims, plans for raising capital, and the 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, foreign exchange rates, regulatory risks, maritime risks for construction and operation, and 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 2016 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 date of release. 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.