Alterra arranges $133M (U.S.) refinancing for HS Orka
Alterra Power Corp. has arranged a $133-million (U.S.) loan refinancing with Arion Bank for its Icelandic subsidiary, HS Orka. Alterra will use the loan for its Bruarvirkjun hydro and Reykjanes geothermal projects, as well as to retire current loans.
ALTERRA POWER Corp. has executed a $133- million( U.S .) (112 million euros) refinancing of the corporate loans at its Icelandic subsidiary, HS Orka hf. Primary uses of loan proceeds include construction of the 9.9-megawatt Bruarvirkjun hydro project, drilling and other field development activities at the Reykjanes geothermal operation, and the retirement of 52 million euros of currently outstanding loans.
The new loan, provided by Arion Bank, carries an initial term of five years with options for HS Orka to extend the loan’s term up to 18 years, subject to meeting certain extension conditions. The loan will be secured by the assets of HS Orka and is non-recourse to Alterra. The loan will finance in tranches upon the fulfilment of certain conditions precedent.
“We are pleased to complete this refinancing, keeping us on track for our planned hydro and geothermal growth in Iceland,” said Lynda Freeman, Alterra’s chief executive officer. “The new loan will also enable increased dividends to Alterra and HS Orka’s other shareholders beginning in 2019.”
About Alterra Power Corp.
Alterra Power is a global renewable energy company that manages operations of eight power plants totalling 825 megawatts of hydro, wind, geothermal and solar generation capacity in Canada, the United States and Iceland. Alterra owns a 363-megawatt share of this capacity, generating over 1,500 gigawatt-hours of clean power annually.
Alterra is also constructing the 200-megawatt Flat Top wind project in central Texas, which is expected to be in operation by the first half of 2018 (51 per cent owned by Alterra). Upon the completion of Flat Top, Alterra will operate nine power plants totalling 1,025 megawatts of capacity and will own a 465-megawatt share of this capacity, generating almost 2,000 gigawatt-hours of clean power annually.
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