Funding has been secured for the Goulais Wind Farm currently under construction north of Sault Ste. Marie.
Capstone Infrastructure Corp. has provided $76-million in new project-level funding for the 25-megawatt project, which is being developed in partnership with the Batchewana First Nation.
"Securing the Goulais project financing on favourable terms is another important step in Capstone's successful execution of our development pipeline," said Michael Bernstein, Capstone’s president and CEO, in a news release.
The company also has other projects under development, including the Skyway 8 facility, located near Dundalk in southern Ontario, and the Saint-Philémon project in Quebec.
“As a result, we are realizing the value of our development pipeline, as well as improving the performance of the 95-megawatt operating portfolio we acquired,” Bernstein said. “This progress continues Capstone's track record of building value to provide an attractive total return for our shareholders."
The corporation, through an indirect subsidiary, has entered into a credit facility arranged by Stonebridge Financial Corporation that will provide up to approximately $76 million in project-level construction and long-term financing for the project, bearing interest at a fixed rate of 5.16 per cent.
Following construction completion, the financing will convert to a fully amortizing term loan maturing in 2035. Capstone and the Batchewana First Nation have contributed a combined $23.5 million in equity for the project, for a total investment of up to $100 million. The Goulais Wind Farm is expected to be commissioned during the second quarter of 2015, and no further equity will be required from Capstone for its three core wind projects.
Toronto-based Capstone has a mandate to develop, acquire and manage a portfolio of high quality utilities, power and transportation businesses, and public-private partnerships that operate in a regulated or contractually-defined environment and generate stable cash flow. Capstone currently has investments in utilities businesses in Europe and owns, operates and develops thermal and renewable power generation facilities in Canada with a total installed capacity of net 449 megawatts.
