Alterra Power (TSE:AXY) and funds managed by Axium Infrastructure have announced the conversion of the $176.5m Jimmie Creek hydroelectric project construction loan to a term loan.
The non-recourse loan facility is priced at an all-in rate of 5.26% and will amortize over 40 years, except for the final 10% of principal which will be paid at maturity in 2056.
The project lender group consists of The Manufacturers Life Insurance Co. (administrative agent and lead arranger), Sun Life Assurance Co. of Canada, The Canada Life Assurance Co., Industrial Alliance Insurance and Financial Services Inc. and The Great-West Life Assurance Co.
The Jimmie Creek project began commercial operations on Aug. 1 and provides 62 MW of clean power capacity to southwest British Columbia. The Jimmie Creek project is now selling 100% of its renewable power under a 40-year energy purchase agreement with BC Hydro that expires in 2056.
Alterra and Axium own 51% and 49% of the project, respectively, which is operated by Alterra in cooperation with its partners, Klahoose First Nation, Tla’amin Nation and shíshálh Nation.
Jay Sutton, Alterra’s Vice President of Hydro, said, “This is a huge milestone for the project, completing the transition from construction into the initial 40-year operations phase. Jimmie Creek has come out of the gate strongly, generating at 110% of plan in August and 121% of plan so far in September,” Sutton said.
Alterra Power is a leading global renewable energy company, operating seven power plants totaling 819 MW of generation capacity including British Columbia’s largest run-of-river hydro facility and largest wind project.
Axium Infrastructure is an independent portfolio management firm dedicated to generating long-term investment returns through investing in core infrastructure assets. Axium Infrastructure manages dedicated infrastructure funds having $1.5bn in assets under management as well as approximately $1bn in co-investments.