Northland Power Income Fund

Northland Power Income Fund

October 15, 2009 10:50 ET

Northland Power Income Fund Announces the Closing of $161 Million Offering of Trust Units and Convertible Debentures

TORONTO, ONTARIO--(Marketwire - Oct. 15, 2009) -

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Northland Power Income Fund ("Northland Power" or the "Fund'") (TSX:NPI.UN) is pleased to announce the closing of its previously announced public offering of Trust Units and 6.25% convertible unsecured subordinated debentures, series A, due December 31, 2014 (the "Debentures"). The group of underwriters, led by CIBC, exercised its over-allotment option in full. Accordingly, the Fund issued an aggregate of 6,704,500 trust units at $10.35 per Trust Unit and $92 million principal amount of Debentures for aggregate gross proceeds of approximately $161 million. The Debentures have been listed on the Toronto Stock Exchange under the symbol "NPI.DB.A".

Proceeds from the Offering will be used to finance Northland Power's investment in its 86 MW Spy Hill peaking facility to be built near Spy Hill, Saskatchewan to finance the Fund's remaining commitments related to Northland Power's Jardin d'Eole and Thorold projects, now nearing completion, and other business purposes, including repayment of existing credit facilities.

About Northland Power Income Fund

Northland Power Income Fund is a Canadian income trust that indirectly has ownership or economic interests in 10 power projects in operation and construction totaling over 1,100 megawatts ("MWs") (net 872 MWs). The Fund's assets comprise natural-gas-fired plants which efficiently and cleanly produce electricity and steam as well as facilities generating renewable energy from wind and biomass. Sales are made almost entirely under long-term contracts with a current average duration of 14 years. The Fund's plants are located in Canada, the United States and Germany. The merger with Northland Power Inc. ("NPI") on July 16, 2009 internalized management and provided the Fund with the ability to grow organically by generating its own development opportunities, as well as bringing in NPI's pipeline of high-quality development prospects.

Forward Looking Statements

Certain statements in this news release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Fund's and its subsidiaries' current expectations. Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of the Fund's and its subsidiaries' for the current fiscal year and subsequent periods. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "estimates", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including the perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. Although these forward-looking statements are based upon management's current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties, including those set out in the management's discussion and analysis section of the Fund's 2008 annual report, the Fund's Annual Information Form dated March 13, 2009, the Fund's Management Information Circular dated May 1, 2009, and the Supplement to the Management Information Circular dated July 10, 2009 certain of which are beyond management's control. The Fund's actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or what benefits, including the amount of distributions, the Fund and Unitholders will derive therefrom.

The forward-looking statements contained in this news release are made as of the date hereof for the purpose of providing readers with the Fund's expectations for the coming year. The forward-looking statements may not be appropriate for other purposes. Other than as specifically required by law, the Fund undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Contact Information

  • Northland Power Income Fund
    Barb Bokla
    Manager, Investor Relations
    (416) 962-6262 x156
    Northland Power Income Fund
    Boris Balan
    Director of Communications
    (416) 962-6262 x116
    Northland Power Income Fund
    Fax: (416) 962-6266