Capstone Infrastructure Corporation Completes Financing of Hydro Power Facilities
TORONTO, ONTARIO (June 6, 2012) – Capstone Infrastructure Corporation (TSX: CSE; CSE.DB.A; CSE.PR.A – the “Corporation”) today announced it has completed the previously announced approximately $100 million debt offering by a wholly-owned subsidiary entity of the Corporation comprising $80.4 million of senior secured bonds and $20.2 million of subordinated secured bonds (collectively, the “Bonds”) to recapitalize its hydro power facilities.
Following the repayment of the approximately $27 million levelization debt balance at the Wawatay hydro facility along with transaction-related costs, the net proceeds of the financing are approximately $72 million. In addition, the Corporation has established debt service and maintenance reserve accounts, which are initially cash funded, in the amount of $4 million. As a result, approximately $68 million of the net proceeds from the financing will be used to repay a portion of the approximately $80 million outstanding on the Corporation’s CPC-Cardinal credit facility, which matures on September 28, 2012. The senior secured and subordinated secured bonds are fully amortizing with 28-year and 29-year terms, and bear interest at fixed rates of 4.6% and 7.0%, respectively. The Bonds are secured by the hydro power facilities alone and are non-recourse to the Corporation’s other businesses.
The Corporation is currently finalizing a new corporate credit facility with its existing lenders to refinance the remaining approximately $12 million outstanding under the CPC-Cardinal credit facility.
TD Securities Inc. acted as sole arranger on the private placement of the Bonds.
About Capstone Infrastructure Corporation
Capstone Infrastructure Corporation’s mission is to build and responsibly manage a high quality portfolio of infrastructure businesses in Canada and internationally in order to deliver a superior total return to shareholders by providing reliable income and capital appreciation. The Corporation’s portfolio currently includes investments in gas cogeneration, wind, hydro, biomass and solar power generating facilities, representing approximately 370 MW of installed capacity, a 33.3% interest in a district heating business in Sweden, and a 50% interest in a regulated water utility in the United Kingdom. Please visit www.capstoneinfrastructure.com for more information.
For further information, please contact:
Vice President, Communications and Investor Relations
Tel: (416) 649-1325