CALGARY, ALBERTA, Dec. 20, 2002 — Canadian Hydro Developers Inc. has announced the closing of $68 million in credit facilities with National Bank of Canada and The Toronto-Dominion Bank.
The credit facilities consist of a revolving reducing loan in the amount of $52.3 million, letters of credit in the amount of $12.7 million, and a treasury risk line of credit in the amount of $3 million. These facilities replace existing facilities with the Lenders consisting of $41.3 million of available debt from combined 364 day credit facilities, $13.7 million in letters of credit, and $1 million from a treasury risk line of credit.
The loan results in $11 million of additional debt financing, which will be used to provide funding for the Grande Prairie EcoPower™ Centre (25 MW). Commencement of construction on the Grande Prairie EcoPower™ Centre is contingent upon contracting an additional 80,000 MWh annually on a long-term basis to a third party and obtaining a construction line of credit.
The Loan, which is amortized over 15 years, has a rolling two year term, renewed annually, that consists of a 364 day revolving period plus an additional one year term. This loan bears interest at prime plus 0.75%, or at Bankers’ Acceptances plus a stamping fee of 2%, with monthly payments of $295,250 plus interest. Concurrent with closing, the Company entered into an interest rate swap arrangement with TD Securities Inc. and National Bank of Canada to fix the interest rate at 6.77% per annum on 100% of the debt for the first 5 years and 50% of the debt in years 6 through 10.
Canadian Hydro is a developer, owner and operator of thirteen generating facilities: nine “run of river” hydroelectric plants, three wind plants and one natural gas-fired plant, totalling 88.9 MW net to the Company’s interest. In addition, the Pingston Hydroelectric Plan is currently under construction and approximately 223 MW are in various stages of permitting for construction in the next five years. All of the Company’s plants and projects are located in British Columbia, Alberta, and Ontario. Canadian Hydro’s wind and water plants are certified under the EcoLogo® program.
Canadian Hydro Developers, Inc. is committed to the concept of low-impact power generation. Through its wind and run-of-river hydro facilities, Canadian Hydro is demonstrating that commitment to the benefit of the environment and its shareholders.