Boralex has announced closing of agreements to refinance almost all of its wind farm operation in France amounting to $ 1.7 bn., divided among triad of credit agreements maturing in 2034, 2036 and 2040 respectively. In a press release issued by Boralex, the company has claimed it to be the largest refinancing agreement in the renewable energy sector in France and the largest refinancing agreement for Boralex.
The transaction is expected to open financial resources of over $178 mn by grouping previously individually financed assets via 30 different credit agreements. The transaction will bolster the financial position of Boralex as the amount will be used to minimize the company’s current credit facility.
Boralex is vying to reap benefits from viable environment in the European debt market. The refinancing arrangement will reduce Boralex’s AIR (average interest rate) for the assets and projects by 95 bps—2.70% to 1.75 %. Maximization of capital structure and the plunge in rate will shrink the consolidated annual interest expense of the corporation by 12%, or $15 mn.
Prominently, Boralex affirmed that projected net non-recurring expenses of $17 mn, comprising preferably of penalties for early repayment will be mentioned in Q4 2019 results.
Bruno Guilmette, Boralex’s Vice President and Chief Financial Officer, dubbed the refinancing ‘major step forward’ which would minimize implementation cost of strategic plan and make considerable financial resources available. The CFO further showed reverence to the European financial partners who unabatingly counted on Boralex’s leadership and business model.
Echoing the words of Guilmette, Nicolas Wolff, Vice President and General Manager of Boralex Europe, expressed his gratitude to financial partners, including banks and advisors for standing like a rock and partnering them in the complex undertaking.
Along with financial advisors, including KPMG, Ester, Messier Maris, law firms Maffei, De Pardieu, Linklaters LLP, Brocas played no less role than the financial partners in the success of the landmark transaction.