Alterra Power Corp. has closed a C$110 million (US$100.5 million) loan facility to finance construction of the 62-MW Jimmie Creek hydro plant in British Columbia and the 204-MW Shannon wind power project in Texas.
Alterra said the loan facility, with affiliates of AMP Capital Investors Ltd. will mature in 2023 with no scheduled payments of principal prior to maturity. The loan facility has no equity or equity-related components. Loan pricing is about 8 percent per year based on current market rates.
Proceeds from the loan facility are to be received in up to three tranches: Tranche A, C$67.3 million on or before Aug. 15; Tranche B, C$21.5 million at or after closing of construction financing for Jimmie Creek subject to certain conditions; and Tranche C, C$21.2 million at or after closing of construction financing for Shannon subject to certain conditions.
The facility will be used to pay development and construction costs and sponsor equity contributions for Jimmie Creek and Shannon and for other general corporate purposes. Tranche A is to be secured by Alterra’s interests in the 234-MW Toba Montrose hydro project and the 144-MW Dokie 1 wind project in British Columbia. Upon closing of Tranches B and C, the cash flows from Jimmie Creek and Shannon also are to support the facility.
Alterra and Fiera Axium Infrastructure Inc. announced a partnership agreement in April for ownership and construction of Jimmie Creek. The plant is part of the 124-MW Upper Toba hydroelectric project, along with the 62-MW Upper Toba hydro plant. SNC-Lavalin was named engineering, procurement and construction management contractor for Jimmie Creek in July.
Alterra, which was formed by the merger of Plutonic Power Corp. and Magma Energy in 2011, acquired full ownership of Jimmie Creek from General Electric in 2013.
The run-of-river Jimmie Creek plant, being built in the Toba River Valley near Powell River, B.C., features a rubber diversion dam, 3-kilometer buried penstock and a powerhouse with two 32.5-MW turbine-generators. It is to sell power to BC Hydro under a 40-year contract.