Bond settlement to cut Alterra's stake in Icelandic subsidiary

The stake of Canadian renewables company Alterra Power Corp (TSE:AXY) in Icelandic geothermal business HS Orka hf will be reduced to 53.9% as a result of an upcoming bond settlement.

Alterra, which currently owns 66.6% in HS Orka, said on Wednesday its subsidiary Magma Energy Sweden is negotiating a final settlement of its USD-71.3-million (EUR 62.6m) non-recourse bond that matures on July 16. The collateral under the bond is shares of HS Orka hf representing a 12.7% ownership stake. The settlement will see this transferred to the bondholder, a consortium of Icelandic pension funds, Fagfjarfestasjoðurinn ORK. Alterra said that once this is done its interest in HS Orka hf will shrink to 53.9% and it will continue managing the Icelandic company and consolidating its financial results.

(USD 1 = EUR 0.877)

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