Boralex Inc. (TSX: BLX), a portfolio company of Caisse de dépôt et placement du Québec (CDPQ), has secured an investment of $200 million by way of an unsecured subordinated loan with a term of ten years with CDPQ and Fonds de solidarité FTQ
CDPQ Revenu Fixe Inc., a subsidiary of CDPQ, will invest $170 million and Fonds de solidarité will invest $30 million.
CDPQ is the single largest shareholder of Boralex, owning [mepr-active rule=”374″ ifallowed=”hide”]#SUBSCRIBERS ONLY CONTENT – where and how did you get your news? Subscribe today to see our research on this and all other subscriber ONLY news. Be informed!#[/mepr-active][mepr-active rule=”374″]19.87% of 76,255,510 Class A shares outstanding (as of March 12, 2018). In July 2017, CDPQ acquired all of the Class A common shares of Boralex held by Cascades Inc. representing 17.3% of the outstanding shares for $287.5 million.[/mepr-active]
The loan will bear interest at a competitive market rate, payable semi-annually. Under the loan agreement, capital is repayable upon maturity on March 29, 2028 subject to certain standard obligations for this type of loan.
Under certain conditions, the loan could be increased by an amount of $100 million, which is available for a period of 12 months from the closing date.
As Boralex announced earlier today that its revolving credit facility has been amended to increase its flexibility, Patrick Lemaire, President and Chief Executive Officer of Boralex, stated: “Once again, the financial markets continue to show their confidence in Boralex and its growth prospects. We plan on using this increased financial flexibility to support our growth strategy.”
“After acquiring a significant stake in Boralex last summer, this financing represents an additional opportunity to support the company’s growth in Québec and internationally,” said Marc Cormier, Executive Vice-President, Fixed Income at la Caisse. “The activities of Boralex, a leader in its industry, are well aligned with la Caisse’s strategy to invest more in the renewable energy sector.”
“The Fonds de solidarité FTQ’s investment in Boralex, a flagship company of Québec’s economy, testifies to our commitment to the continued development of Québec’s expertise in the field of renewable energies. It also fit perfectly in the Fonds’ energy transition plan respectful of workers,” said for his part Normand Chouinard, Executive Vice-President, Investments, for the Fonds de solidarité FTQ.
photo credit: Boralex