Canadian Hydro Developers, Inc.
TSX : KHD

Canadian Hydro Developers, Inc.

June 12, 2008 08:21 ET

Canadian Hydro Closes Private Placement of C$75.9 Million, 10-Year Debentures

CALGARY, ALBERTA--(Marketwire - June 12, 2008) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. NEWSWIRES

Canadian Hydro Developers, Inc. (TSX:KHD) ("Canadian Hydro" or the "Company") announced today that it has closed a private placement issuance of C$75.9 million in unsecured corporate debentures with a 10-year term, maturing on June 11, 2018, bearing interest at a combined rate of 7.07% per annum (the "Debentures"). Scotia Capital Inc. and BMO Nesbitt Burns Inc. acted as co-lead agents and joint book runners for the offering, along with a syndicate of agents, which also included National Bank Financial Inc. and TD Securities Inc. The Company plans to use the net proceeds from the sale of the Debentures to repay and retire its existing $72.3 million acquisition facility and for general corporate purposes. DBRS has assigned a rating of BBB with a Stable trend to the Debentures.

The Debentures are comprised of Series 4 unsecured corporate debentures in the amount of C$55.5 million (the "Series 4 Debentures"), and Series 5 unsecured corporate debentures in the amount of US$20 million (the "Series 5 Debentures"). The Series 4 Debentures have a 10-year term maturing on June 11, 2018, and bear an interest rate of 7.027% per annum, with interest paid semi-annually. The Series 5 Debentures have a 10-year term maturing on June 11, 2018, and bear an interest rate of 7.308% per annum, with interest paid semi-annually. On June 6, 2008, the Company entered into a cross-currency swap to fix both the principal repayment and the semi-annual interest payments on the Series 5 Debentures. The principal amount of US$20,000,000 was fixed at C$20,400,000. The semi-annual interest payments of 7.308% per annum were fixed into Canadian dollars at rate of 7.200% per annum. After giving effect to the cross-currency swap, the principal amount of CHD's Debentures are fixed at C$75,900,000 with an interest rate of 7.073% per annum.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Debentures in any jurisdiction. The Debentures 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 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 EcoLogoM Program.

Common shares outstanding: 143,488,723

The credit rating mentioned in this press release is not a recommendation to purchase, sell or hold the Debentures and does not comment as to market price or suitability for a particular investor.

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 Debentures; 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 Debentures.

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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