The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Marketwire

Northland Power Announces Pricing of North Battleford Bonds

Tuesday, September 17, 2013

Northland Power Announces Pricing of North Battleford Bonds

18:07 EDT Tuesday, September 17, 2013

TORONTO, ONTARIO--(Marketwired - Sept. 17, 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 $667.3 million in bonds to be issued by its wholly owned subsidiary, North Battleford Power L.P. ("North Battleford"). North Battleford has entered into an agency agreement with a syndicate of investment dealers related to the Canadian private placement offering of 4.958% senior secured amortizing Series A bonds which is expected to close on September 20, 2013. The bonds have been provisionally rated A (low) by DBRS and will be fully amortized by their maturity in December 2032.

"This marks the second time Northland's subsidiaries have issued bonds, and we are very pleased with the continued strong interest shown by the financial community," said John Brace, President and CEO of Northland.

Upon closing, the proceeds will be used to repay North Battleford'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 CIBC World Markets Inc.; the dealer syndicate also includes BMO Nesbitt Burns Inc., Casgrain & Company Limited, National Bank Financial Inc., Scotia Capital Inc. and TD Securities.

North Battleford owns and operates a 260 MW natural gas-fired combined cycle facility located approximately 150 km northwest of Saskatoon, Saskatchewan. The facility was developed by Northland and began commercial operations in June 2013. The facility provides baseload power to the Saskatchewan electricity grid under a 20-year Power Purchase Agreement (PPA) with Saskatchewan Power Corporation.

ABOUT NORTHLAND

Northland Power is an independent power producer founded in 1987, and publicly traded since 1997. Northland produces '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 1,319 MW of operating generating capacity, with an additional 90 MW of generating capacity currently in construction, and another 200 MW of wind, solar and run-of-river hydro projects with awarded power contracts. In addition, Northland has acquired the rights to acquire a majority equity stake in Gemini, a 600 MW offshore wind project located 85 km off the coast of the Netherlands in the North Sea. Northland's cash flows are diversified over five geographically separate regions and regulatory jurisdictions in Canada, Europe and the United States.

Northland Power'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 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 2012 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 September 17, 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 Bokla
Manager, Investor Relations
647-288-1438
(416) 962-6266 (FAX)


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

Products
  • Globe Unlimited

    Digital all access pass across devices. subscribe

  • The Globe and Mail Newspaper

    Newspaper delivered to your doorstep. subscribe

  • Globe2Go

    The digital replica of our newspaper. subscribe

  • Globe eBooks

    A collection of articles by the Globe. subscribe

See all Globe Products

Advertise with us

GlobeLink.ca

Your number one partner for reaching Canada's Influential Achievers. learn more

The Globe at your Workplace
Our Company
Customer Service
Globe Recognition
Mobile Apps
NEWS APP
INVESTING APP
Other Sections