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Press release from Marketwire

Northland Power Announces Pricing of Spy Hill Bonds

Wednesday, January 16, 2013

Northland Power Announces Pricing of Spy Hill Bonds18:40 EST Wednesday, January 16, 2013TORONTO, ONTARIO--(Marketwire - Jan. 16, 2013) -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) today announced the pricing of $156.3 million in bonds to be issued by its wholly owned subsidiary, Spy Hill Power L.P. ("Spy Hill"). Spy Hill has entered into an agency agreement with a syndicate of investment dealers related to the Canadian private placement offering of 4.14% senior secured amortizing Series A bonds which is expected to close on January 21, 2013. The bonds have been provisionally rated A (stable) by DBRS and will be fully amortized by their maturity in March 2036. "This marks the first time Northland or its subsidiaries have issued bonds, and we are pleased with the strong interest shown by the financial community in the financing," said John Brace, President and CEO of Northland.Upon closing, the proceeds will be used to repay Spy Hill's 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 led by Casgrain & Company Limited and CIBC World Markets Inc.; the dealer syndicate also includes BMO Nesbitt Burns Inc., National Bank Financial Inc. and Scotia Capital Inc. Spy Hill owns and operates an 86 MW natural gas-fired peaking facility located approximately 230 km east of Regina, Saskatchewan. The facility was developed by Northland and began commercial operations in October 2011. The facility provides peaking power to the Saskatchewan electricity grid under a 25-year Power Purchase Agreement (PPA) with Saskatchewan Power Corporation. Northland was awarded the PPA following a competitive bid process in 2009.ABOUT NORTHLANDNorthland Power Inc. owns or has a net economic interest in 1,005 MW of operating generating capacity, and 320 MW of generating capacity in construction. Northland is also actively developing 280 MW of wind, solar and run-of-river hydro projects already awarded PPAs, and approximately 2,200 MW of additional power generation opportunities. Northland's assets comprise facilities that produce electricity from "clean" natural gas and "green" renewable sources such as wind, solar and biomass. Electricity generation and capacity is primarily sold under long-term contracts with creditworthy customers. Northland's operating thermal power assets are located in the provinces of Ontario and Saskatchewan, Canada, and include the 120 MW Iroquois Falls cogeneration facility, the 110 MW Kingston combined-cycle power facility, the 265 MW Thorold cogeneration facility, the 86 MW Spy Hill peaking facility and an economic interest in two natural-gas- and biomass-fired generation facilities as well as a 19% equity interest in the 230 MW Panda-Brandywine combined-cycle power facility located outside Washington, D.C. Northland's operating renewable power facilities include the 128 MW Jardin d'Eole wind farm and the 100 MW Mont Louis wind farm both located in Quebec, two wind farms totaling 22 MW of installed capacity located in Germany and several rooftop solar power facilities in Ontario. Northland owns the 260 MW natural gas-fired North Battleford project which is currently under construction in Saskatchewan, Canada, and 60 MW of ground-mounted solar projects under construction in various communities in eastern and central Ontario. Northland's cash flows are diversified over five geographically separate regions and regulatory jurisdictions.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 and NPI.DB.A, respectively.FORWARD-LOOKING STATEMENTSThis 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 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 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 2011 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 January 16, 2013. 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.FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: Northland Power Inc.Barb BoklaManager, Investor Relations647-288-1438Northland Power Inc.Adam BeaumontDirector of Finance647-288-1929(416) 962-6266 (FAX)investorrelations@northlandpower.cawww.northlandpower.ca