Press release from CNW Group
Run of River Power and Concord Pacific Announce the Closing of Skookum Creek Power Project Financing
Wednesday, April 03, 2013
Run of River Power and Concord Pacific Announce the Closing of Skookum Creek Power Project Financing19:00 EDT Wednesday, April 03, 2013
VANCOUVER, April 3, 2013 /CNW/ - Run of River Power Inc. ("ROR Power" or the "Company") (TSXV: ROR) is pleased to announce that the 25 MW Skookum Creek Power Project (the "Project") has successfully closed third-party construction financing with the Bank of Montreal ("BMO") and the Canadian Western Bank ("CWB"). BMO and CWB have committed to provide $70 million in construction financing to the Project along with a $77 million non-revolving term credit facility ("Take-out facility") once the Commercial Operation Date ("COD") of the Project has been reached. The maturity date of the Take-out facility is 42 months after the initial advance which is anticipated to be at COD of the Project. The Project will begin to seek permanent third party debt financing once COD has been achieved.
Richard Hopp, President and CEO of Run of River Power remarks: "The close of this financing marks a major milestone for the Company and will significantly enhance shareholder value with the realization of the Project."
Further to the Company's news releases on February 10, 2012 and November 22, 2012, Concord Pacific Green Energy Inc., a subsidiary of Concord Pacific Group (collectively, "Concord") acquired 100% interest in the Project. ROR Power continues to be responsible for the Project's development, engineering and construction pursuant to a construction agreement as well as ongoing operations thereafter. 'We are pleased the Project is presently under construction with about 44% of the construction complete, reports Hopp. "We are on time and on budget." The Skookum Power Project's targeted COD is January 2014.
ROR Power will continue to provide management services for the Project for a fee based on the Project's post-debt service cash flows. In addition, ROR Power has retained a royalty interest in the Project which will pay it 10% of the Project's gross revenues. ROR Power has an option to convert its royalty interest into a 50% equity interest in the Project after the fifth anniversary of the Project's COD. ROR has also received a development fee from Concord in respect of the Project.
The Project, ROR Power and Concord have also entered into forward interest rate swap arrangements with BMO that eliminates its exposure to floating rates under the financing. Cliff McCracken, Senior Vice-President of Concord Pacific adds: "We are excited to expand our Concord Green Energy portfolio to soon provide green renewable power to Metro Vancouver. Green energy solutions of scale will be a key component to the success of sustainable communities in the future."
About Run of River Power Inc.
ROR Power develops renewable, sustainable energy through its portfolio of clean energy projects. The company helps diversify BC's energy mix by providing a cleaner way to generate power and increasing the security of BC's energy supply. ROR Power operates an Eco Logo© certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that provides green power for about 4,000 homes. With a total development potential of approximately 400 MW, the company is well positioned for profitable growth.
About Concord Green Energy
Participating in the future of infrastructure needs of Canadians has always been a cornerstone to Canada's first urban community builder. Concord Pacific created Concord Green Energy to explore and support a variety of zero carbon energy producing projects of scale. Creating sustainable and clean energy at the source to power the communities of the future is the vision of Concord Green Energy. Concord Green Energy's first power project, Red Lily I in Saskatchewan, is complete and is successfully generating renewable energy.
Statements in this release which describe Run of River Power Inc.'s intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve unknown risks and uncertainties which may cause the actual results, performances or achievements of Run of River Power Inc. to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. Run of River Power Inc. may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions and will update such forward-looking statements as required pursuant to applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Run of River Power Inc.
For further information:
Richard W. Hopp
President and CEO