National Bank Financial and Sun Life Financial Announce Closing of Project Borealis PV Solar Farms in Ontario, Canada
TORONTO, Dec. 17, 2013 /CNW Telbec/ – National Bank Financial Inc.
(“National Bank Financial”) and Sun Life Assurance Company of Canada
(“Sun Life Assurance”), a wholly owned subsidiary of Sun Life Financial
Inc., are pleased to announce the successful closing of private
placement financings totalling $390 million of Senior Secured
Construction and Acquisition Term Loan Facilities for a 108 megawatt
(MW) portfolio of solar photovoltaic projects, being developed by
Recurrent Energy, in Ontario, Canada.
The portfolio consists of ten solar sites, known as Project Borealis,
which is currently under construction and expected to be completed in
early 2014. Each of the sites has received an Ontario Feed-in-Tariff
(“FIT”) contract and upon commissioning, the generated energy,
sufficient to power approximately 10,800 homes, will be sold to the
Ontario Power Authority at a fixed rate of 44.3 cents per kilowatt hour
for the next 20 years.
National Bank Financial and Sun Life Assurance acted as debt
co-underwriters for the unrated private placement financings. National
Bank Financial also acted as bookrunner on the financings and is acting
as administrative agent for the lenders on an ongoing basis. Sun Life
Assurance acted as lead lender on the financings.
The term of the amortizing debt facilities is construction plus 19
years. Semi-annual coupons will be paid at a fixed rate and principal
repayments are made throughout the operating period.
The portfolio of projects is being developed by San Francisco-based
solar developer, Recurrent Energy, who has invested significantly in
the Ontario solar market. Upon construction completion, investors Fiera
Axium Infrastructure and Metropolitan Life Insurance Company will act
as the new equity sponsors and have agreed to purchase the sites from
Recurrent Energy under a forward purchase and sale agreement.
“We are delighted to be part of this significant transaction and pleased
to be able to assist Recurrent Energy, MetLife and Fiera Axium in their
investments in Ontario’s renewable energy initiatives” said Peter
Hepburn, Head and Managing Director of the Infrastructure Finance
Group, National Bank Financial. “The underwriting commitment provided
by National Bank and Sun Life for both the construction and acquisition
loans was a key feature in enabling the transaction to take place.”
“Given Sun Life’s focus on sustainable investment, we were pleased to
support the sponsors on the Project Borealis transaction – a clean
reliable source of renewable energy for Ontario communities. The
innovative structure further highlights the benefits of a customized
private placement financing solution” said John Vincent, Senior
Managing Director and Head of Project Finance, Sun Life Financial.
The portfolio of projects will use solar modules manufactured by
Celestica, LLC and will be operated by EDF Renewable Services. The
debt financings were split into four clusters, with each cluster
consisting of two or three solar farms. Each legally and operationally
distinct cluster was financed independently on a non-recourse project
About National Bank of Canada
With $188 billion in assets as at October 31, 2013, National Bank of
Canada (www.nbc.ca), together with its subsidiaries, forms one of Canada’s leading
integrated financial groups, and was named among the 20 strongest banks
in the world by Bloomberg Markets magazine. The Bank has close to
20,000 employees and is widely recognized as a top employer. Its
securities are listed on the Toronto Stock Exchange (TSX: NA). Follow
the Bank’s activities via social media and learn more about its
extensive community involvement at clearfacts.ca and commitment.nationalbank.ca.
About National Bank Financial Inc.
With $80 billion in assets under administration, National Bank Financial
is a fully-integrated investment dealer combining retail advisory and
brokerage services with institutional brokerage, investment banking,
corporate finance, and securities clearing for third parties. National
Bank Financial offers its services to more than 350,000 clients. Its
Financial Markets division has a major presence in Toronto, Calgary,
Vancouver and Montreal, as well as operations in the United States and
About Sun Life Financial
Sun Life Assurance Company of Canada is a wholly owned subsidiary of Sun
Life Financial Inc. and a member of the Sun Life Financial group of
companies. Sun Life Financial is a leading international financial
services organization providing a diverse range of protection and
wealth accumulation products and services to individuals and corporate
customers. Sun Life Financial and its partners have operations in key
markets worldwide, including Canada, the United States, the United
Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India,
China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of
September 30, 2013 the Sun Life Financial group of companies had total
assets under management of $590 billion. For more information please
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and
Philippine (PSE) stock exchanges under the ticker symbol SLF.
SOURCE National Bank of Canada