Macquarie Power & Infrastructure Income Fund Announces Refinancing of Credit Facilities
- Eliminates refinancing risk for next two years
- Confirms underlying stability of portfolio
- Preserves financial flexibility for small to mid-sized acquisitions
TORONTO, ONTARIO (May 19, 2009) – Macquarie Power & Infrastructure Income Fund
(TSX: MPT.UN; MPT.DB – “MPT” or the “Fund”) today announced that it has refinanced
and extended two of its credit facilities in the aggregate amount of $162.5 million. The Fund’s
previous credit facilities were scheduled to mature in June 2010 and May 2011, respectively.
The new credit facility (“Credit Facility”), which matures in June 2012, is comprised of a $121.9
million term facility and a $40.6 million revolving facility. It also includes an accordion feature
that offers the Fund the ability to increase the size of the Credit Facility up to an aggregate of
$200 million, subject to securing additional commitments from existing or new lending
institutions.
“This new credit facility carries no refinancing risk for the Fund until 2012. It also maintains our
flexibility to pursue small to mid-sized growth opportunities that meet our investment and return
criteria,” said Michael Bernstein, the Fund’s interim President and Chief Executive Officer.
“While we are subject to incrementally higher pricing due to current credit market conditions,
the fact that we completed this refinancing in a challenging market environment underlines the
quality of our infrastructure businesses and the confidence of the financial community in the
stability of our operations.”
The Credit Facility replaces the Fund’s Clean Power subsidiary’s existing $150 million
unsecured senior credit facility that was scheduled to mature in June 2010. The Clean Power
credit facility was comprised of a $75 million revolving facility and a fully drawn $75 million
term facility, of which $25 million has now been repaid. The Credit Facility also replaces the
Fund’s Cardinal subsidiary’s $50 million senior credit facility that was scheduled to mature in
May 2011. The Cardinal credit facility included a $15 million revolving facility and a $35 million
term facility, the latter of which was fully drawn. The Credit Facility also effectively removes
the refinancing risk associated with the Fund’s convertible debentures, which mature on
December 31, 2010.
Mr. Bernstein continued, “We are particularly pleased to have completed this refinancing well
in advance of 2010, which provides certainty for our investors while enabling us to turn our full
attention to other strategic initiatives that will help to build long-term value for the Fund’s
unitholders.”
The Fund does not expect the refinancing to materially affect its 2009 payout ratio. For 2009,
the Fund currently anticipates maintaining distributions to unitholders of $1.05 per unit, barring
any significant events or growth initiatives. As previously disclosed, the Fund expects its 2009
payout ratio to slightly exceed 100% of distributable cash.1 The Fund’s general reserve
account ensures the Fund’s ability to support distributions to unitholders in 2009 if required.
Macquarie Power & Infrastructure Income Fund is not an authorised deposit taking institution for the purposes of the Banking
Act (Cth) 1959 and Macquarie Power & Infrastructure Income Fund’s obligations do not represent deposits or other liabilities
of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of
the obligations of Macquarie Power & Infrastructure Income Fund.
About the Fund
Macquarie Power & Infrastructure Income Fund invests in essential infrastructure assets in
North America with an emphasis on power infrastructure. MPT’s strategy is to acquire and
actively manage a diverse, high quality portfolio of infrastructure assets to improve their
financial performance and provide growing and sustainable distributions to unitholders. MPT’s
portfolio includes investments in gas cogeneration, wind, hydro and biomass power generating
facilities, representing approximately 350 MW of installed capacity, and a 45% interest in
Leisureworld Senior Care LP, a leading provider of long-term care, or social infrastructure, in
Ontario. MPT is managed by a wholly-owned subsidiary of Macquarie Group Limited. Please
visit www.macquarie.com/mpt for additional information.
1 Distributable cash is defined as cash flows from operating activities after removing changes in working capital and reflecting the
impacts of releases from maintenance reserves, allocations to major maintenance and capital expenditure reserves, non-discretionary
payments and receipts, and distributions from Leisureworld.
Forward-looking Statements
Certain statements in this news release may constitute “forward-looking” statements, which involve known and
unknown risks, uncertainties and other factors that may cause the actual results to be materially different from any
future results expressed or implied by such forward-looking statements. When used in the this news release, such
statements use such words as “may”, “will”, “expect”, “believe”, “plan” and other similar terminology. Forward-looking
statements involve significant risks and uncertainties, should not be read as guarantees of future performance or
results and will not necessarily be accurate indications of whether or not such results will be achieved. The forwardlooking
statements contained in this news release are based on information currently available and what the Fund
currently believes are reasonable assumptions, including the material assumptions for each of the Fund’s assets set
out in the Fund’s 2008 Annual Report under the headings “Outlook” on pages 23 to 24, as updated in subsequently
filed quarterly Financial Reports of the Fund. However, the Fund cannot assure investors that actual results will be
consistent with these forward-looking statements. These forward-looking statements are made as of the date of this
news release, and, except as required by law, the Fund does not undertake any obligation to update publicly or to
revise any of the included forward-looking statements, whether as a result of new information, future events or
otherwise. The Fund cautions readers not to place undue reliance on any forward-looking statements contained in this
news release. The forward-looking statements contained in this news release are expressly qualified by this
cautionary statement.
The forward-looking information contained in this news release is presented for the purposes of assisting investors
and analysts in understanding the Fund’s financial position and our stated priorities and objectives may not be
appropriate for other purposes. The Fund cautions readers not to place undue reliance on any forward-looking
statements, which speak only as of the date made. A number of factors could cause actual results to differ materially
from the results discussed in the forward-looking statements, including, but not limited to, risks associated with: the
operational performance of the Fund’s assets; power purchase agreements; fuel costs, supply and transportation;
default under credit agreements; regulatory regime and permits; land tenure and related rights; government regulation
and funding; the ability to complete future acquisitions; LTC home ownership and operation; minority ownership
interest in Leisureworld; reliance on key personnel; default under Leisureworld’s long-term debt and credit facility;
labour relations and cost; the variability of distributions; unitholder liability; dependence on Macquarie Power
Management Ltd., the manager of the Fund, and potential conflicts of interest; insurance; and risks related to the
environmental, health and safety regimes within which the Fund’s assets operate. The risks and uncertainties
described above are not exhaustive and other events and risk factors, including risk factors disclosed in Fund’s filings
with Canadian securities regulatory authorities, could cause actual results to differ materially from the results
discussed in the forward-looking statements.
For further information, please contact:
Harry Atterton
Vice President and Chief Financial Officer
Tel: (416) 607 5198
Email: harry.atterton@macquarie.com
Aaron Boles
Vice President, Communications and Investor Relations
Tel: (416) 649 1325
Email: aboles@capstoneinfra.com