Northland Power Income Fund
TSX : NPI.UN
TSX : NPI.DB
TSX : NPI.DB.A
TSX : NPP.PR.A

Northland Power Income Fund

August 30, 2010 17:14 ET

Northland Power Completes Financing for North Battleford Energy Center

TORONTO, ONTARIO--(Marketwire - Aug. 30, 2010) -

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Northland Power Income Fund ("Northland") (TSX:NPI.UN)(TSX:NPI.DB)(TSX:NPI.DB.A)(TSX:NPP.PR.A) announced today that it has completed financing for its wholly-owned 260 megawatt North Battleford Energy Center project in Saskatchewan. The financing was provided by an international syndicate of 15 banks led by the Canadian Imperial Bank of Commerce, the Bank of Montreal, and Union Bank. The financing consists of a $542 million non-recourse construction loan that will convert to a 7-year amortizing term loan after the start of commercial operations and letter of credit facilities for an additional $38 million to support the project's other obligations. Northland has also negotiated a swap to fix the term loan rate over the entire 20 year duration of the project's Power Purchase Agreement with SaskPower.

"We are very pleased to have completed this important milestone for the North Battleford project" said John Brace, CEO of Northland. "We are grateful for the support provided by SaskPower, the project's offtaker, and look forward to continued long-term cooperation both here and at our 86 megawatt Spy Hill peaking facility also under construction east of Regina. We readily acknowledge the tremendous support of the entire community of North Battleford in helping to see this project achieve this important step."

In addition to the three lead banks, the remaining syndicate members were: Allied Irish Banks p.l.c., National Bank of Canada, The Bank of Nova Scotia, Mizuho Corporate Bank Ltd., Siemens Financial Ltd., Société Générale, Sumitomo Mitsui Bank Corporation of Canada, The Toronto-Dominion Bank, Bayerische Landesbank, Canada Western Bank, Landesbank Hessen-Thüringen Girozentrale, and Natixis. 

Construction of the 260 megawatt, natural gas-fired baseload facility began in May 2010. Commercial operations are expected to begin in the summer of 2013. The facility is being built under an engineer, procure and construct contract by Kansas City based Kiewit Power Partners, and will use a GE 7FA gas turbine operating in combined-cycle mode.

Completion of the North Battleford project, as well as the Spy Hill peaking plant and the 100 megawatt Mont Louis wind farm under construction in the Gaspe region of Quebec, would see Northland's total assets grow to over 1,300 megawatts of net generating capacity, an increase of over 50%. In addition, Northland has a large portfolio of clean and green development projects, including over 200 megawatts of solar, wind, and hydro projects awarded under the Ontario Feed-in-Tariff program.

ABOUT NORTHLAND

Northland is a Canadian income trust that has ownership or economic interests in 10 power projects totaling over 1,100 MW (net 872 MW). Northland'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 weighted average duration of 13 years. Northland's plants are located in Canada, the United States and Germany. In addition, Northland has the 86 MW Spy Hill project, 260 MW North Battleford project and 100 MW Mont Louis wind farm in construction, and 216 MW of wind, solar and run-of-river hydro projects awarded under the Ontario Power Authority's feed-in-tariff program in advanced stages of development. Northland also has a diverse development portfolio of high-quality 'Clean and Green' energy projects, including wind, solar, natural gas, and hydro assets that supports its strategy of sustainable growth primarily through internally developed opportunities.

The Fund's trust units, two series of convertible debentures, and Northland Power Preferred Equity Inc.'s preferred shares, which trade on the Toronto Stock Exchange under the symbols NPI.UN, NPI.DB, NPI.DB.A, and NPP.PR.A respectively, are qualified investments for RRSPs and DPSPs under the Canadian Income Tax Act. The Fund has in place a distribution re- investment plan that allows Unitholders who are residents of Canada to automatically have their monthly cash distributions reinvested in additional units. Participants do not pay any costs associated with the plan, including brokerage commissions. For further information or to join the plan, contact your financial advisor or broker.

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