Northland Power Announces Signing of $465 Million Non-Recourse Debt Financing for EBSA Utility In Colombia

TORONTO, June 24, 2020 (GLOBE NEWSWIRE) -- Northland Power Inc. (“Northland” or “the Company”) (TSX: NPI) is pleased to announce the signing of an agreement for the permanent financing of its distribution utility Empresa de Energía de Boyacá (EBSA) in Colombia for an aggregate amount of approximately $465 million, inclusive of a Canadian dollar tranche and a Colombian peso tranche. The financing is expected to close in early July 2020.  

The non-recourse debt financing is currently structured as a $450 million term loan and a $15 million debt service reserve credit facility, for an initial two-year term which, Northland expects to renew on an annual basis. The two facilities carry a blended interest rate of approximately 5.3% and provide Northland with the ability to right-size EBSA’s capital structure annually by increasing leverage commensurate with expected increases in Adjusted EBITDA. The non-recourse debt financing was provided by a syndicate of Canadian and international financial institutions and is not contingent upon the expected final tariff resolution for EBSA by local regulators.   

The long-term financing plan for the acquisition of EBSA included: approximately $345 million of gross proceeds in common equity associated with the closing of the acquisition in January 2020; this non-recourse debt financing; and the balance funded through Northland’s corporate credit facilities. Northland intends to use the proceeds of the non-recourse debt financing to fully repay the outstanding acquisition bridge facility in the amount of $135 million and the existing local currency asset-level debt, with the remaining amount to be used to pay down borrowings on the Company’s revolving credit facility. After giving effect to the EBSA permanent financing, Northland expects to have over $550 million of liquidity available through its corporate credit facilities and cash on hand.   

“We are pleased that we were able to structure and execute a flexible financing solution to support the long-term growth of EBSA,” said Pauline Alimchandani, Northland’s Chief Financial Officer. “Being able to secure our first ever non-recourse holdco level debt financing through the support of our strong lender relationships during the current market environment speaks to the quality of the asset, management team and the financial market’s confidence in Northland.”

All amounts in Canadian dollars, unless otherwise noted.


Northland is a global developer, owner and operator of sustainable infrastructure assets that deliver predictable cash flows. Headquartered in Toronto, Canada, Northland was founded in 1987 and has been publicly traded since 1997 on the Toronto Stock Exchange (TSX: NPI).

Northland owns or has an economic interest in 2,681 MW (net 2,266 MW) of operating generating capacity and 130 MW of generating capacity under construction, representing the La Lucha solar project in Mexico. Northland also owns a 60% equity stake in the 1,044 MW Hai Long projects under development in Taiwan and operates a regulated utility business in Colombia.

Northland's common shares, Series 1, Series 2 and Series 3 preferred shares trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A and NPI.PR.B, NPI.PR.C, respectively.


This release contains certain forward-looking statements. Readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” These statements are based upon certain material factors or assumptions that were applied in developing the forward-looking statements. Although these forward-looking statements are based upon management’s current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties. Some of the factors that could cause results or events to differ from current expectations include, but are not limited to, statements regarding future adjusted EBITDA, free cash flows, the construction, completion, attainment of commercial operations, construction risks, counterparty risks, operational risks, foreign exchange rates, regulatory risks, maritime risks for construction and operation, and the variability of revenues from generating facilities powered by intermittent renewable resources and the other factors described in the “Risks and Uncertainties” section of Northland’s 2019 Annual Report and Annual Information Form, both of which can be found at under Northland's profile and on Northland’s website Northland’s actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur.

The forward-looking statements contained in this release are based on assumptions that were considered reasonable on date of release. Other than as specifically required by law, Northland undertakes no obligation to update any forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

For further information, please contact:

Wassem Khalil, Senior Director, Investor Relations & Strategy
+1 (647) 288-1019

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Susan Sperling, Director of Communications
+1 (647) 288-1105