TORONTO, June 5, 2020 /PRNewswire/ - Polaris
Infrastructure Inc. (TSX: PIF) ("Polaris" or the "Company"), a
Toronto-based company engaged in
the operation, acquisition and development of renewable energy
projects in Latin America, is
pleased to announce that it has closed on a US$27M loan financing (the "Loan") today with the
Brookfield Infrastructure Debt Fund, a global credit-focused fund
managed by Brookfield Asset Management Inc (NYSE: BAM).
The Loan has been made to a 100% owned non-operating subsidiary
of Polaris that holds all of the equity of its operating
run-of-river hydro projects in Peru, including the Canchayllo (5 MW), El
Carmen (8 MW) and the 8 de Agosto (20 MW) projects. The use
of proceeds of the Loan will be to repay the US$4.0 million aggregate principal amount of the
existing senior loan at Canchayllo, with the remaining net proceeds
to be used for general corporate purposes by Polaris. Under
the terms of the Loan, Brookfield Infrastructure Debt Fund has been
granted senior security on the Canchayllo project and second
security on the El Carmen and 8 de Agosto projects and has an
8-year term.
"I am very pleased to have raised capital from such a reputable
party in our industry and during such a difficult market
environment," said Marc Murnaghan,
CEO of the Company. "This capital will enable us to continue
to pursue corporate development opportunities that we see in the
market. Accessing alternative and non-dilutive pools of
capital is a strategic initiative for the Company as we continue to
grow and diversify."
"We are pleased to provide Polaris with a flexible hold-co
financing solution on their Peruvian hydro assets, backed by
long-term PPAs, as they continue to expand into new jurisdictions
in South America," added
Hadley Peer Marshall, Brookfield's managing director and head of
infrastructure credit for the Americas, in a statement.
Cautionary Statements
This news release contains certain "forward-looking information"
within the meaning of applicable Canadian securities laws, which
may include, but is not limited to, statements with respect to use
of proceeds of the Loan and management's expectations regarding
growth opportunities, and business prospects and opportunities.
Such forward-looking information reflects management's current
beliefs and is based on information currently available to
management. Often, but not always, forward-looking statements can
be identified by the use of words such as "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"predicts", "intends", "targets", "aims", "anticipates" or
"believes" or variations (including negative variations) of such
words and phrases or may be identified by statements to the effect
that certain actions "may", "could", "should", "would", "might" or
"will" be taken, occur or be achieved. A number of known and
unknown risks, uncertainties and other factors may cause the actual
results or performance to materially differ from any future results
or performance expressed or implied by the forward-looking
information. Such factors include, among others, general business,
economic, competitive, political and social uncertainties; the
actual results of current geothermal energy production, development
and/or exploration activities and the accuracy of probability
simulations prepared to predict prospective geothermal resources;
changes in project parameters as plans continue to be refined;
possible variations of production rates; failure of plant,
equipment or processes to operate as anticipated; accidents, labour
disputes and other risks of the geothermal industry; political
instability or insurrection or war; labour force availability and
turnover; delays in obtaining governmental approvals or in the
completion of development or construction activities, or in the
commencement of operations; the ability of the Company to continue
as a going concern and general economic conditions, as well as
those factors discussed in the section entitled "Risk Factors" in
the Company's Annual Information Form for the year ended
December 31, 2019 which is available
on SEDAR. These factors should be considered carefully, and
readers of this news release should not place undue reliance on
forward-looking information.
Although the forward-looking information contained in this news
release is based upon what management believes to be reasonable
assumptions, there can be no assurance that such forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance
on forward-looking information. The information in this news
release, including such forward-looking information, is made as of
the date of this news release and, other than as required by
applicable securities laws, Polaris Infrastructure assumes no
obligation to update or revise such information to reflect new
events or circumstances.
About Polaris Infrastructure
Polaris Infrastructure is a Toronto-based company engaged in the
operation, acquisition and development of renewable energy projects
in Latin America. Currently, the Company operates a 72MW
geothermal project located in Nicaragua and three run-of-river hydroelectric
projects in Peru, with
approximately 20MW average (net), 8MW average (net), and 5MW
average (net) of capacity.
About Brookfield Asset Management
Brookfield is a leading global
alternative asset manager with over $515
billion in assets under management. The company has more
than a 120-year history of owning and operating assets with a focus
on infrastructure, real estate, renewable power and private equity.
The Brookfield Infrastructure Debt Fund seeks to lend to owners and
operators of high-quality infrastructure assets in the renewable
power, utilities, transport, data and energy sectors across
North America, Europe and selective countries in South America and Asia Pacific. For more
information, please visit www.brookfield.com.
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SOURCE Polaris Infrastructure Inc.