Canadian Hydro Developers, Inc.

Canadian Hydro Developers, Inc.

December 17, 2007 18:24 ET

Canadian Hydro Announces Closing of the Strategic Acquisition of Le Nordais Wind Plant in Quebec

CALGARY, ALBERTA--(Marketwire - Dec. 17, 2007) -


Further to its press release of December 14, 2007, Canadian Hydro Developers, Inc. ("Canadian Hydro" or the "Company") (TSX:KHD) announced today that the previously announced acquisition of the 99 MW Le Nordais Wind Plant ("Le Nordais"), located on the Gaspe Peninsula in the province of Quebec (the "Acquisition") has closed. The consideration for the Acquisition consisted of approximately $109.7 million in cash, plus the assumption of existing debt against Le Nordais' assets of $6.3 million, plus costs related to the transaction. Concurrently with the execution of the agreement relating to the Acquisition, the Company entered into a definitive agreement whereby it acquired from a private company certain intellectual property, equipment and inventory that are used in the operation and maintenance of Le Nordais for a purchase price of $4.75 million.

All conditions to the completion of the Acquisition under the terms of the share purchase agreement in respect thereof were satisfied today (the "Acquisition Time"). Immediately after the Acquisition Time, the 8,800,000 issued and outstanding subscription receipts of the Company (the "Subscription Receipts") were exchanged and converted into common shares of the Company ("Common Shares"), which Common Shares were issued to the holders of Subscription Receipts on the basis of one Common Share per Subscription Receipt, without the payment of additional consideration. The transfer register in respect of the Subscription Receipts closed at 5:00 p.m. (Montreal time) today.

Net proceeds from the offering of the Subscription Receipts of $52.8 million were used to pay a portion of the Acquisition price.

As part of the Acquisition, Canadian Hydro amended the credit agreement with its syndicate of corporate lenders (the "Syndicate") to include a six-month, unsecured bridge facility for $72.3 million of the Acquisition price, which may be extended at the option of the Company for an additional six months upon payment of an extension fee. It is anticipated that the bridge facility will be repaid on or before maturity through the issuance of senior unsecured debentures; however, no arrangements have yet been made with respect to the same. DBRS has confirmed the Company's rating of BBB with a Stable trend with respect to the Company's senior unsecured debentures as a result of this Acquisition.

"The acquisition of Le Nordais Wind Plant is a strategic move for Canadian Hydro, adding new operating assets and new project opportunities," said John Keating, CEO of Canadian Hydro. "Quebec is an excellent province for both wind and low-impact hydro development, as there are good wind and water resources, an amenable regulatory environment, excellent transmission and proximity to major markets. In addition, Quebec is the largest electricity market in Canada."

Canadian Hydro is committed to Building a Sustainable Future®. The Company is a developer, owner, and operator of 20 power generation facilities totalling net 364 MW of capacity in operation and has an additional 473 MW nearing construction. The renewable generation portfolio is diversified across three technologies (water, wind, and biomass) in the provinces of British Columbia, Alberta, Quebec and Ontario. This portfolio is unique in Canada as all facilities are certified, or slated for certification, under Environment Canada's EcoLogo(M) Program.

Common shares outstanding: 141,834,973

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) schedules and timing of certain projects and the Company's strategy for growth; (iv) the Company's future operating and financial results; (v) treatment under governmental regulatory regimes and tax, environmental and other laws; (vi) the timing of the delivery of power generation assets under construction contracts; and (vii) 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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