Canadian Hydro Developers, Inc.

Canadian Hydro Developers, Inc.

June 16, 2008 14:09 ET

Canadian Hydro Closes $611 Million Bank Credit Facilities

CALGARY, ALBERTA--(Marketwire - June 16, 2008) -


Canadian Hydro Developers, Inc. (TSX:KHD) ("Canadian Hydro" or the "Company") announced today that it has amended its existing credit agreement of $370.8 million adding an additional $312.5 million of unsecured credit facilities, and five additional new corporate lenders, for a total of $611.0 million.

Prior to the close, the Company's $370.8 million credit facility consisted of $233.5 million in the aggregate of construction credit facilities for the Melancthon II Wind Project ("Melancthon II") and certain Blue River Hydroelectric Projects ("Blue River"), a $72.3 million acquisition facility for Le Nordais Wind Plant, and a revolving operating facility (the "Operating Facility") of $65 million with an existing syndicate of four corporate lenders including The Toronto-Dominion Bank and The Bank of Nova Scotia as co-lead arrangers and joint book managers and National Bank of Canada and Alberta Treasury Branches.

The amended credit facility includes the $233.5 million in the aggregate of construction facilities for Melancthon II and Blue River, a $292.5 million construction facility for the Wolfe Island Wind Project, and an $85 million Operating Facility, a $20 million increase from the existing Operating Facility. On June 12, 2008, the Le Nordais acquisition facility was repaid with the proceeds from the issuance of the Company's Series 4 and Series 5 unsecured corporate debentures. The new syndicate of bank lenders includes The Toronto-Dominion Bank and The Bank of Nova Scotia as co-lead arrangers and joint book managers, National Bank of Canada as documentation agent, Alberta Treasury Branches, Societe Generale, Sumitomo Mitsui Banking Corporation of Canada, Union Bank of California, N.A, Canadian Western Bank and Laurentian Bank.

The terms of the Melancthon II and Blue River construction facilities remain unchanged with a 18-month and 31-month drawdown period, respectively, followed by a two-year non-amortizing term out period, bearing interest at Bankers' Acceptances rate plus a stamping fee of 0.70% per annum. The Wolfe Island construction facility has a 15-month drawdown period followed by a two-year non-amortizing term out period. Both the Wolfe Island construction facility and the Operating Facility bear interest at Bankers' Acceptances plus a stamping fee of 1.375% per annum.

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, 517 MW in and nearing construction, and 1,632 MW in development. The renewable generation portfolio is diversified across three technologies (water, wind, and biomass) in the provinces of British Columbia, Alberta, Ontario and Quebec. 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: 143,488,723

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 closing of the credit facilities; and (ii) 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 Credit Facilities.

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.

Contact Information

  • Canadian Hydro Developers, Inc.
    John Keating
    (403) 269-9379
    Canadian Hydro Developers, Inc.
    Kent Brown
    Executive Vice President & CFO
    (403) 269-9379