Canadian Hydro Developers, Inc.

Canadian Hydro Developers, Inc.

December 14, 2007 08:44 ET

Canadian Hydro Announces Closing of Its $55 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Dec. 14, 2007) -


Canadian Hydro Developers, Inc. ("Canadian Hydro" or the "Company") (TSX:KHD) announced today the completion of its previously announced public offering of an aggregate of 8,800,000 subscription receipts of Canadian Hydro (the "Subscription Receipts") at a price of $6.25 per Subscription Receipt for gross proceeds of $55 million (the "Offering"). The Subscription Receipts were purchased and re-sold to the public by way of a short form prospectus on a bought deal basis by a syndicate of Canadian underwriters led by Scotia Capital Inc. (as sole-bookrunner) and FirstEnergy Capital Corp., and including Canaccord Capital Corporation, RBC Dominion Securities Inc., Cormark Securities Inc., GMP Securities L.P., National Bank Financial Inc. and TD Securities Inc. (collectively, the "Underwriters"). The Company has granted the Underwriters an over-allotment option to purchase up to an additional 880,000 Subscription Receipts, on the same terms, for up to 30 days from closing of the Offering.

Each Subscription Receipt represents the right to receive one common share of Canadian Hydro, without the payment of additional consideration, on the closing of the Acquisition (as defined below). If the Acquisition closes on or before February 28, 2008, the net proceeds from the Offering will be released to Canadian Hydro and used to pay a portion of the Acquisition price. In the event that the Acquisition does not close prior to 5:00 p.m. (Montreal time) on February 28, 2008, or if the share purchase agreement relating to the Acquisition is terminated prior to such time, the holders of Subscription Receipts will be entitled to receive an amount equal to the full subscription price thereof plus their pro rata share of the interest earned or income generated on such amount.

Net proceeds from the Offering were deposited in escrow pending the closing of the previously announced acquisition by the Company of the 99 MW Le Nordais Wind Plant located in Quebec (the "Acquisition"). Closing of the Acquisition is anticipated to occur as early as December 17, 2007. As previously disclosed, completion of the Acquisition is subject to the satisfaction of various conditions, and the Company has until February 28, 2008 to close.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Subscription Receipts in any jurisdiction. The Subscription Receipts offered will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to a U.S. person, absent registration, or an applicable exemption therefrom.

Canadian Hydro is committed to Building a Sustainable Future®. The Company is a developer, owner, and operator of 19 power generation facilities totalling net 265 MW of capacity in operation and has an additional 403 MW nearing construction. The renewable generation portfolio is diversified across three technologies (water, wind, and biomass) in the provinces of British Columbia, Alberta, and Ontario. This portfolio is unique in Canada as all facilities are certified, or slated for certification, under Environment Canada's EcoLogoM Program.

Common shares outstanding: 133,028,723

Advisory Respecting Forward-Looking Statements:

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "confident", "might" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following: (i) any benefits anticipated to be achieved by the Company upon completion of the Acquisition; (ii) the ability to obtain all of the permits and regulatory approvals, and the ability to satisfy all conditions precedent, necessary for the completion of the Acquisition; and (iii) other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release.

The forward-looking information and statements contained in this news release reflect several material factors, expectations and assumptions including, without limitation: (i) commodity prices, foreign currency exchange rates and interest rates; (ii) supply and demand for electricity; (iii) expectations regarding the Company's ability to raise capital and to increase its power generation capability through acquisitions and construction; (iv) schedules and timing of certain projects and the Company's strategy for growth; (v) the Company's future operating and financial results; (vi) treatment under governmental regulatory regimes and tax, environmental and other laws; (vii) the timing of the delivery of power generation assets under construction contracts; and (viii) the expected long-term average generation of the assets acquired pursuant to the Acquisition.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements.

The Company cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and the Company assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.

The Toronto Stock Exchange has neither reviewed nor approved this press release.

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