Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers N > Headlines for Northland Power Inc. > News item |
Northland raises C$500 million at lower cost than redeemed securities
By Devika Patel
Knoxville, Tenn., Aug. 14 – Northland Power Inc. raised C$500 million of cash to fund three projects last quarter at an attractive coupon that was at least 200 basis points lower than some securities the company redeemed in January.
“Despite challenging conditions in the renewable sector, our team completed our corporate funding plan this year with proceeds secured from our inaugural C$500 million green subordinated notes issuance,” president and chief executive officer Mike Crawley said on the company’s second quarter ended June 30 earnings conference call on Aug. 11.
“This issuance is a final element in our external equity funding plan for the 2023 construction project, Hai Long, Baltic Power and the 250 megawatt Oneida Energy storage project,” he said.
The green notes were oversubscribed and were sold at a lower coupon than the preference shares the company redeemed earlier in the year.
“We closed our external funding gap with the successful issuance of the C$500 million of green notes, which was an oversubscribed offering,” chief financial officer Pauline Alimchandani said on the call.
“Post hedges and tax deductions, the cost of this offering was approximately 6.2%, which is a good result for the business and our balance sheet, as it was secured at least 200 basis points lower relative to the rate reset preference shares that were redeemed in January of this year,” she said.
Northland is a power producer based in Toronto.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.