Alterra refinances debt at Icelandic geothermal unit

Alterra Power Corp (TSE:AXY) on Friday announced a USD-133-million (EUR 111.3m) refinancing of the corporate loans of its Icelandic geothermal business HS Orka hf.

The primary financing was used for the construction of HS Orka’s 9.9-MW Bruarvirkjun hydropower plant (HPP), drilling and other field development works at the Reykjanes geothermal station, and for the retirement of EUR 52 million (USD 62.1m) of outstanding debt.

The new credit facility was extended by Icelandic lender Arion Bank. It was provided for an initial period of five years and has an extension option of up to 18 years, subject to certain conditions. The loan will be secured by HS Orka’s assets and is non-recourse to parent Alterra.

The Canadian renewables company explained that the refinancing will allow it to remain on track for its planned expansion on the hydropower and geothermal markets in Iceland. "The new loan will also enable increased dividends to Alterra and HS Orka's other shareholders beginning in 2019," CEO Lynda Freeman added.

Alterra Power manages 825 MW of renewable energy capacity in Canada, the US and Iceland, including wind, geothermal and solar parks. Its share of the total is 363 MW.

(USD 1.0 = EUR 0.837)

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