Boralex Inc (TSX: BLX), a Kingsey Falls, Québec-based developer, builder and operator of renewable power facilities, has raised a $200 million unsecured subordinated loan. Caisse de dépôt et placement du Québec accounted for $170 million of the loan, while Fonds de solidarité FTQ invested $30 million. The deal includes the potential for a $100 million increase in the loan’s size within 12 months of the close. The company said the proceeds will be used for its growth strategy. Last year, the Caisse acquired Cascades Inc‘s 17.3 percent interest in Boralex for $287.5 million.
Caisse de dépôt et placement du Québec and Fonds de solidarité FTQ will invest up to C$300 million CA by way of an unsecured subordinated loan to Boralex
MONTRÉAL, March 29, 2018 /CNW Telbec/ – Boralex Inc. (TSX: BLX) (“Boralex” or the “Corporation”) announces today the closing of a joint investment of $200 million in the Corporation by way of an unsecured subordinated loan with a term of ten (10) years. The investment is made by Caisse de dépôt et placement du Québec (la « Caisse ») via its subsidiary CDPQ Revenu Fixe Inc. which is investing an amount of $170 million to which is added an investment of $30 million by Fonds de solidarité FTQ (the “Fonds”).
This investment of $200 million (“Tranche A”) could, under certain conditions, be increased by an amount of $100 million (“Tranche B”), which is available for a period of 12 months from the closing date. If Tranche B is drawn, it shall be under the same terms and conditions applicable to the Tranche A, with the only difference being the interest rate which shall reflect the interest rate curve at the moment of disbursement.
Tranche A will bear interest at a competitive market rate, payable semi-annually. Under the Loan Agreement, capital is repayable upon maturity on March 29, 2028 subject to certain standard obligations for this type of loan.
As Boralex announced earlier today that its revolving credit facility has been amended to increase its flexibility, Patrick Lemaire, President and Chief Executive Officer of Boralex, stated: “Once again, the financial markets continue to show their confidence in Boralex and its growth prospects. We plan on using this increased financial flexibility to support our growth strategy.”
“After acquiring a significant stake in Boralex last summer, this financing represents an additional opportunity to support the company’s growth in Québec and internationally,” said Marc Cormier, Executive Vice-President, Fixed Income at la Caisse. “The activities of Boralex, a leader in its industry, are well aligned with la Caisse’s strategy to invest more in the renewable energy sector.”
“The Fonds de solidarité FTQ’s investment in Boralex, a flagship company of Québec’s economy, testifies to our commitment to the continued development of Québec’s expertise in the field of renewable energies. It also fit perfectly in the Fonds’ energy transition plan respectful of workers,” said for his part Normand Chouinard, Executive Vice-President, Investments, for the Fonds de solidarité FTQ.
Boralex develops, builds and operates renewable energy power facilities in Canada, France, the United Kingdom and the United States. A leader in the Canadian market and France’s largest independent producer of onshore wind power, the Corporation is recognized for its solid experience in optimizing its asset base in four power generation types — wind, hydroelectric, thermal and solar. Boralex ensures sustained growth by leveraging the expertise and diversification developed over the past 25 years. Boralex’s shares and convertible debentures are listed on the Toronto Stock Exchange under the ticker symbols BLX and BLX.DB.A, respectively. More information is available at www.boralex.com or www.sedar.com. Follow us on Facebook, LinkedIn and Twitter.
About Caisse de dépôt et placement du Québec
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2017, it held CAD 298.5 billion (USD 238.2 billion) in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ is a capital development fund that channels the savings of Quebecers into investments. With $13.7 billion in net assets as at November 30, 2017, the Fonds has helped create and maintain over 186,440 jobs. The Fonds has more than 2,700 partner companies and over 645,000 shareholder-savers.
For further information: Media : Julie Lajoye, Principal Advisor, Public Affairs and Communications, Boralex Inc., 514 623-4197, firstname.lastname@example.org; Jean-Benoît Houde, Senior Advisor, Strategic Communications, Caisse de dépôt et placement du Québec, 514 847-2571, email@example.com; Patrick McQuilken, Senior Advisor, Media Relations and Communications, Fonds de solidarité FTQ, 514 850-4835, firstname.lastname@example.org; Investors : Marc Jasmin, Director, Investor Relations, Boralex Inc., 514 284-9868, email@example.com
Photo courtesy of Boralex Inc