- Adds its first wind project in British Columbia
- Increases the pipeline of projects under development by 33%
to 308 MW net (451 MW gross)
- Contributes to cash flows by 2015
LONGUEUIL, QC,
July 26, 2012 /CNW Telbec/ - Innergex
Renewable Energy Inc. (TSX: INE) ("Innergex" or the
"Corporation") announces that it has entered into a definitive
agreement with Finavera Wind Energy (TSX-V: FVR) to
acquire its Wildmare wind energy project located in British Columbia, Canada.
The purchase price of this asset will be
approximately $22.0 million,
subject to adjustments based on the realization of certain events
and milestones. Other than an initial advance of $1.0 million, there will be no disbursement prior
to closing, and payments will be spread over several months.
Innergex expects the transaction to close by the fall of 2012,
subject to regulatory approvals and other customary closing
conditions.
"This acquisition marks another milestone for
Innergex, as we add our first wind project in British Columbia and expand our wind energy
activities outside the province of Quebec", states Michel
Letellier, President and Chief Executive Officer of
Innergex. "We are expanding our pipeline of projects under
development with power purchase agreements, in order to ensure a
sustainable level of growth over the long-term", he adds.
Wildmare is a wholly-owned wind project located
on Crown lands in the Peace River region of British Columbia. All of the power produced
will be sold to BC Hydro under a 25-year power purchase agreement,
which provides for an annual adjustment to the selling price based
on a portion of the Consumer Price Index. Wildmare is expected to
have a total installed capacity of 77 MW, an estimated yearly
energy output of 238,200 MWh, enough to power almost
24,000 BC households, and is expected to produce revenues of
approximately $28.0 million in
its first full year of operation. The Corporation believes that
this project, which is currently in the permitting phase, should
reach commercial operation in 2015, with construction lasting
approximately 15 months. During the period prior to the closing of
the transaction, the Corporation and Finavera will work together to
advance the project through its environmental assessment process
and to continue consultation with Finavera's First Nation partners.
The total cost of the project, including the consideration paid to
acquire it, is estimated to be $217.0 million, approximately two-thirds of
which will be financed with project-level debt and the balance
financed with equity.
About Innergex Renewable Energy Inc.
Innergex Renewable Energy Inc. (TSX: INE) is a
leading Canadian independent renewable power producer. Active since
1990, the Company develops, owns, and operates run-of-river
hydroelectric facilities, wind farms, and solar photovoltaic farms
and carries out its operations in Quebec, Ontario, British
Columbia, and Idaho, USA.
Its portfolio of assets currently consists of: (i) interests in 26
operating facilities with an aggregate net installed capacity of
494 MW (gross 880 MW), including 20 hydroelectric
operating facilities, five wind farms, and one solar photovoltaic
farm; (ii) interests in 9 projects under development or under
construction with an aggregate net installed capacity of
231 MW (gross 374 MW), for which power purchase
agreements have been secured; and (iii) prospective projects with
an aggregate net capacity totaling 2,904 MW (gross 3,127 MW).
Innergex Renewable Energy Inc. is rated BBB- by S&P and BBB
(low) by DBRS.
The Corporation's strategy for building
shareholder value is to develop or acquire high-quality facilities
generating sustainable cash flows and providing a high return on
invested capital, and to distribute a stable dividend.
Forward-Looking Information
Disclaimer
This press release contains forward-looking
information within the meaning of securities legislation. All
information and statements other than statements of historical
facts contained in this press release are forward-looking
information. Such statements and information may be identified by
looking for words such as "about", "approximately", "may",
"believes", "expects", "will", "intend", "should", "plan",
"predict", "potential", "project", "anticipate", "estimate",
"continue" or similar words or the negative thereof or other
comparable terminology. Such forward-looking information includes,
without limitation, statements with respect to the anticipated
closing of the transaction, benefits which may accrue to Innergex
and its shareholders as a result of the acquisition, commercial
operation date, installed capacity, the obtaining of required
permits, average annual electricity production, construction costs
and timing, project financing, business strategy, and plans and
objectives of or involving Innergex.
The forward-looking information includes
forward-looking financial information or financial outlook, such as
revenues, estimated construction costs, and electricity production,
to inform investors of the potential financial impact of the
acquisition on the Corporation's results. Such information may not
be appropriate for other purposes.
The forward-looking information is based on
certain key expectations and assumptions made by Innergex as of the
date of this press release, including expectations and assumptions
concerning satisfaction of all conditions of closing, availability
of capital resources, the obtaining of required permits,
construction costs and timing, commercial operation date, and
performance of the facility, as well as estimates, forecasts and
opinions of the Corporation. Although Innergex believes that
the expectations and assumptions on which such forward-looking
information is based are reasonable, undue reliance should not be
placed on the forward-looking information since no assurance can be
given that they will prove to be correct. Actual results could
differ materially from those currently anticipated due to a number
of factors and risks. These include, but are not limited to,
failure to close the acquisition, potential undisclosed liabilities
associated with the acquisition, failure to realize the benefits of
the acquisition, design, development and construction of the new
facility, performance of third-party suppliers, and other risks
generally attributable to the business of Innergex. For
additional information with respect to risks and uncertainties,
refer to the Annual Information Form of Innergex filed on SEDAR's
website at www.sedar.com. The forward-looking information contained
herein is made as of the date of this press release and the
Corporation does not undertake any obligation to update or revise
any forward-looking information, whether as a result of events or
circumstances occurring after the date hereof, unless required by
legislation.
SOURCE INNERGEX RENEWABLE ENERGY INC.