Innergex eyes USD 147m from share sales

Innergex Renewable Energy Inc (TSE:INE) is looking to raise a total of CAD 187 million (USD 147m/EUR 128m) in gross proceeds from a bought deal equity offering and a private placement so it could finance its latest acquisition in Chile.

The Canadian power producer has agreed for a syndicate of underwriters to purchase on a bought deal basis, an aggregate of 8.45 million common shares at an offering price of CAD 17.75 apiece for total proceeds of CAD 150 million.

The underwriters are CIBC Capital Markets, National Bank Financial Inc, BMO Capital Markets and TD Securities Inc. They have also been granted a 30-day over-allotment option to buy up to an aggregate of an additional 1.27 million common shares at the same price.

Meanwhile, Innergex has also signed a subscription agreement that allows a unit of Hydro-Quebec to buy 2.1 million common shares at the offering price for an additional CAD 37 million in proceeds.

The sum raised from both transactions will be used to finance a portion of the Canadian company’s latest deal in Chile. More specifically, Innergex will acquire the 332-MW Aela portfolio of newly-built wind parks from a joint venture between Actis and Mainstream Renewable Power. The total purchase price amounts to USD 686 million (EUR 599.3m) and includes the assumption of USD 386 million of existing debt.

Innergex noted that in addition to the funds raised through the concurrent bought deal equity offering and private placement, it will use net proceeds from a combined refinancing of the non-recourse debt at the wind parks and at the company’s existing Chilean projects. This is expected to be arranged in the second quarter of the year. A portion of the financing plan is backed by acquisition debt facilities provided by CIBC, the announcement mentioned.

(CAD 1.0 = USD 0.786/EUR 0.685)

(USD 1.0 = EUR 0.874)

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