TORONTO, ONTARIO--(Marketwired - Sept. 30, 2014) - Capstone Infrastructure Corporation (TSX:CSE)(TSX:CSE.DB.A)(TSX:CSE.PR.A)(TSX:CPW.DB) (the "Corporation") today announced approximately $76 million in new project-level financing for the 25-megawatt Goulais Wind Farm. The project is now under construction in the Algoma district, north of Sault Ste. Marie, Ontario. Capstone is developing the site in partnership with the Batchewana First Nation of Ojibways.
"Securing the Goulais project financing on favourable terms is another important step in Capstone's successful execution of our development pipeline," said Michael Bernstein, President and Chief Executive Officer. "Three wind facilities that formed the core of the development projects from our acquisition of Renewable Energy Developers a year ago are all proceeding well. Our Skyway 8 facility reached COD in August, and our Saint-Philémon wind project is advancing largely on schedule. As a result, we are realizing the value of our development pipeline, as well as improving the performance of the 95-megawatt operating portfolio we acquired. This progress continues Capstone's track record of building value to provide an attractive total return for our shareholders."
The Corporation, through an indirect subsidiary, has entered into a credit facility arranged by Stonebridge Financial Corporation that will provide up to approximately $76 million in project-level construction and long-term financing for the project, bearing interest at a fixed rate of 5.16%. Following construction completion, the financing will convert to a fully amortizing term loan maturing in 2035. Capstone and the Batchewana First Nation have contributed a combined $23.5 million in equity for the project, for a total investment of up to $100 million. The Goulais Wind Farm is expected to be commissioned during the second quarter of 2015, and no further equity will be required from Capstone for its three core wind projects.
About Capstone Infrastructure Corporation
Capstone's mission is to provide investors with an attractive total return from responsibly managed long-term investments in core infrastructure in Canada and internationally. The company's strategy is to develop, acquire and manage a portfolio of high quality utilities, power and transportation businesses, and public-private partnerships that operate in a regulated or contractually-defined environment and generate stable cash flow. Capstone currently has investments in utilities businesses in Europe and owns, operates and develops thermal and renewable power generation facilities in Canada with a total installed capacity of net 449 megawatts. Please visit www.capstoneinfrastructure.com for more information.