Northland Looks To Gain Funds For Gemini Offshore Wind Project

NAW Staff, Wednesday 26 February 2014 - 00:00:00

Ontario-based Northland Power Inc. plans to issue shares to the public in Canada to help pay for the 600 MW Gemini offshore wind project, being developed off the coast of The Netherlands in the North Sea.

With a syndicate of underwriters led by CIBC and BMO Capital Markets, the company will issue, on a bought deal basis, 9.375 million of common shares at a price of C$16 each, representing C$150 million of gross proceeds and C$75 million aggregate principal amount of 5.00% extendible convertible unsecured subordinated debentures.

Under a private placement, Northland will also issue 3.125 million common shares to Northland Power Holdings Inc., a company controlled by Northland Power Inc. founder James C. Temerty, or an affiliate. The company says this will represent gross proceeds of about C$50 million.

Temerty, together with his associates and affiliates, will collectively hold 1 million Class A shares and over 50.777 common shares of Northland, representing an approximate 35% interest in Northland on a fully diluted basis.

As previously announced, Northland has entered into agreements to acquire a 60% equity interest in the EUR 2.8 billion Gemini offshore project. Northland expects its total investment in the wind farm to be approximately C$550 million, and the project is slated to be completed in 2017.

The company also plans to use whatever funds it raises for general corporate purposes.






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