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Alterra Power refinances $133m in loans in geothermal firm HS Orka

Reykjanes power plant of HS Orka, Iceland (source: Commons/ Wikimedia)
Alexander Richter Alexander Richter 15 Sep 2017

Canadian Alterra Power announces the successful refinancing of $133 million in corporate loans at its Icelandic subsidiary, HS Orka. The use of the loan will be primarily a small hydro project, as well as drilling and other field activities at its Reykjanes geothermal operations in Iceland.

In a release today, Canada-based Alterra Power Corp. (TSX: AXY) announces the execution of a US$133 million (EUR112 million) refinancing of the corporate loans at its Icelandic subsidiary, HS Orka hf. Primary uses of loan proceeds include construction of the 9.9 MW Brúarvirkjun hydro project, drilling and other field development activities at the Reykjanes geothermal operation, and the retirement of EUR52 million of currently outstanding loans.

The new loan, provided by Arion Bank, carries an initial term of five years with options for HS Orka to extend the loan’s term up to 18 years, subject to meeting certain extension conditions. The loan will be secured by the assets of HS Orka and is non-recourse to Alterra. The loan will fund in tranches upon the fulfillment of certain conditions precedent.

“We are pleased to complete this refinancing, keeping us on track for our planned hydro and geothermal growth in Iceland,” said Lynda Freeman, Alterra’s CEO. “The new loan will also enable increased dividends to Alterra and HS Orka’s other shareholders beginning in 2019.”

Source: Company release by email