Business & Finance
Business and Finance
Business and Finance
Mon, June 13, 2011 Sprott Power Corp. Announces Agreements and Financing to Complete the Amherst Wind Farm Project
TORONTO, June 13, 2011 /CNW/ - Sprott Power Corp. ("Sprott Power") (TSX: SPZ), a developer, owner and operator of renewable energy projects, today announced a partnership with Firelight Infrastructure Partners L.P. ("Firelight"), to own, finance and operate a 31.5 MW wind power project located near Amherst, Nova Scotia (the "Amherst Project") which will utilize 15 of the new Suzlon S97-2.1 MW wind turbines. The Amherst Project was originally acquired by Sprott Power in March 2011 and is supported by a 25-year power purchase agreement ("PPA") with Nova Scotia Power Inc. ("NSPI"). Construction on the project is already underway and is expected to be completed in Q1 2012.
Sprott Power, through its subsidiaries, will own 51% of the Amherst Project and has entered into a partnership agreement with Firelight as a 49% co-equity partner to collectively invest approximately $61 million to fund the capital needs of the project. Sprott Power will play a lead role and will provide management of the project.
"We are delighted to partner with Firelight and to draw upon its strength and experience to expand our operations in Nova Scotia and to further increase our business within the renewable power industry," said Jeff Jenner, President and CEO of Sprott Power. "When the Amherst Project is commissioned in early 2012 it will nearly double the revenue and installed capacity under management of Sprott Power and greatly increase our free cash flow."
The Amherst Project partners signed a contract with Suzlon Wind Energy Corporation ("Suzlon") in which Suzlon will provide S97-2.1 MW wind turbines as well as supportive services of engineering, procurement, construction and commissioning. Pursuant to a 10-year warranty, maintenance and service agreement, Suzlon will also provide operation and maintenance services for the Amherst Project.
The partners also announced today the commitment by Ontario Pension Board and Canada Life Assurance to provide a secured long term non-recourse debt facility of up to $45 million in connection with the Amherst Project. The debt facility was arranged by Stonebridge Financial Corporation and is subject to certain conditions and final documentation.
"We are extremely pleased to complete the necessary turbine and construction supply contracts and the financial arrangements necessary to bring the Amherst Project to fruition. Sprott Power appreciates the land owner's and the community of Amherst's support for this project through its development and their belief in our ability to make this project a reality. We are also grateful for the support of the Province of Nova Scotia, as well as the professionalism of NSPI in assisting us in a very short time frame," said Mr. Jenner.
Firelight's Mike Kosiancic added: "Firelight alongside its management team at RMS Energy, look forward to working with our partner, Sprott Power, and their management team in creating another successful renewable energy project in Nova Scotia. The Amherst Project will complement our investment in the 51 MW RMSEnergy Dalhousie Mountain wind energy project that was commissioned in Nova Scotia in 2009."
"This is our first order of the new S9X turbines in North America and we're pleased Sprott chose Suzlon for this project," said Andris Cukurs, CEO of Suzlon Wind Energy Corp. "The S9X-2.1 MW turbine is an evolution of Suzlon's proven technology platform and every aspect of the turbine features improved design to deliver a higher return on investment," said Cukurs.
About Sprott Power Corp.
Sprott Power is a publicly-traded (TSX:SPZ) Canadian-based company dedicated to the development, owning and operating of renewable energy projects. Through project development efforts, acquisitions, partnerships and joint ventures, Sprott Power provides its shareholders with income and growth from the renewable power generation sector of the energy industry.
About Firelight Infrastructure Partners L.P.
Firelight Infrastructure Partners is a Toronto-based Canadian Partnership that invests in North American renewable energy projects including wind, hydro and solar. Firelight partners with experienced developers to provide the capital necessary to develop, construct and operate high quality renewable energy projects. With $200 million of committed capital, Firelight matches its financial strength and industry knowledge with the technical expertise of its partners to build a sustainable portfolio of renewable energy projects. Investments made by Firelight are bringing clean power to local communities in Prince Edward Island, Nova Scotia and Ontario.
About Suzlon Energy Limited
Suzlon ranked as the world's third leading wind turbine supplier in terms of market share in 2008. Suzlon has ranked as the leading manufacturer in the Indian market for ten consecutive years, maintaining over 50 per cent market share. Suzlon has its corporate offices in Pune, India and the company's global spread is reflected in its projects and markets portfolio - extending across Asia, Australia, Europe and North and South America. Suzlon is a highly vertically integrated wind turbine manufacturer with manufacturing capability along the full value chain - from components to complete wind turbine systems. For more information on Suzlon, please visit: [ www.suzlon.com ].
About Stonebridge Financial Corporation
Stonebridge Financial Corporation is a specialized financial services company with a proven reputation and expertise in structuring project financing for syndication in the Canadian institutional market place. Stonebridge offers innovative financial solutions to Clients in the infrastructure, health care and energy sectors. Their industry and technical expertise, coupled with strategic institutional relationships have allowed them to successfully arrange over $2.1 billion of project debt financing since their inception in 1999. Over the years, their ability to work closely with Clients, be involved from the very early stage of project development, provide advice relative to financial structuring, and work in partnership to ensure successful project financing are the fundamental building blocks underpinning Stonebridge's strategy.
Forward-Looking Statements
Certain information contained in this press release may constitute "forward-looking information" which reflect the current expectations of Sprott Power and Firelight. This information reflects Sprott Power's and Firelight's current beliefs with respect to future events and are based on information currently available to management. Forward-looking information involves significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking information including, without limitation, the risks listed under the heading "Risk and Uncertainties" in Sprott Power's Management's Discussion and Analysis of Financial Results dated June 13, 2011. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information contained in this release. Although forward-looking information contained in this release is based upon what Sprott Power and Firelight believe to be reasonable assumptions, management cannot assure investors that actual results, performance or achievements will be consistent with this forward-looking information. The forward-looking information is made as of the date of this release and Sprott Power and Firelight do not assume any obligation to update or revise it to reflect new events or circumstances, except as required by law.
