SWX Shear Wind Inc.

Shear Wind Inc. ("Shear Wind") (TSX VENTURE:SWX) announces today that Glen Dhu
Wind Energy Limited Partnership ("Glen Dhu LP"), has signed a credit agreement,
in connection with the debt financing (the "Debt Financing") for its 62.1
megawatt Glen Dhu wind power project in Nova Scotia (the "Glen Dhu Project").
The Glen Dhu Project is anticipated to be the largest wind farm in Nova Scotia,
and is presently on track to begin commissioning turbines in December 2010 and
to be fully operational by March, 2011. The Glen Dhu Project will consist of 27
ENERCON E-82 2.3 MW wind turbines.


The total amount of the Debt Financing is approximately CDN $114,522,510, and
the closing of Debt Financing is subject to meeting certain conditions
precedent. The Debt Financing includes approximately CDN$107,000,000 in
construction financing for the Glen Dhu Project, which converts to a term loan
with an 18 year term, subject to the provisions of the credit agreement. This
loan has a floating interest rate based on the CDOR rate, and an interest rate
swap for hedging purposes. The lenders under the Debt Financing are the Spanish
Bank Banco Bilbao Vizcaya Argentaria, S.A. ("BBVA") and Instituto de Credito
Oficial ("ICO"), a state-owned corporate entity attached to the Ministry of
Economy and Finance of the Spanish Government. In addition, as part of the Debt
Financing, BBVA and ICO are providing a CDN$1,552,500 letter of credit for
security pursuant to Glen Dhu LP's power purchase agreement with Nova Scotia
Power Inc. BBVA is also providing a letter of credit in the amount of
approximately CDN$5,970,010 for debt reserve. 


"We are very pleased to sign the credit agreement for the Glen Dhu Wind Project
with BBVA and ICO," said Mike Magnus, President and CEO of Shear Wind.
"Completing this financing, in addition to our equity contributions, will ensure
that the Glen Dhu Project is fully financed. This is an important milestone in
building what is expected to be Nova Scotia's largest wind farm and which is a
major construction project in the Province this year." Mr. Magnus added,
"Environmental and engineering work is complete, financing is in place, roads
and foundations are being built, wind turbines are ordered and being delivered
and Nova Scotians are working on-site. These are very exciting times for our
Company." 


Shear Wind owns approximately 51% of the limited partnership units (the "Units")
of Glen Dhu LP, and Genera Avante Holdings Canada Inc. ("GAHC") owns the
approximately 49% of the Units of Glen Dhu LP. In addition, GAHC owns
approximately 62% of Shear Wind on a fully diluted basis, following its
investment in Shear Wind in November 2009. GAHC is owned by Inveravante
Inversiones Universales, S.L. ("Inveravante"), an international corporation
based in Spain. The credit facilities forming the Debt Financing will be secured
by a first priority lien on substantially all of the assets of Glen Dhu LP,
including all of the Units owned by Shear Wind and GAHC in Glen Dhu LP and all
of the outstanding shares owned by Shear Wind and GAHC in Glen Dhu Wind Energy
Inc., the general partner of Glen Dhu LP. 


"The experience gained in the development, financing, construction and
commissioning process of the Glen Dhu project will serve as the executional
foundation to strategically develop Shear Wind's portfolio of projects in
Canada. Our focus now turns to building out our 100MW Willowridge project in
Alberta. Shear Wind is also engaged in preparations towards a Request for
Proposal (RFP) for a portion or all of an offering of 175 MW of wind generation
in Saskatchewan, said Mike Magnus. "Our strategic plan is to continue to grow
Shear Wind and provide value to the shareholders."


In addition to the Debt Financing, Inveravante will be providing a CDN$2,100,000
subordinated loan (the "Subordinated Loan") to Glen Dhu LP. The Subordinated
Loan will be unsecured, postponed and subordinate to the Debt Financing, subject
to certain permitted payments that will be paid in priority to any distributions
by Glen Dhu LP to Shear Wind or GAHC as limited partners, as set out in a
Subordinated Loan agreement.


Shear Wind has agreed with Inveravante to use reasonable efforts to put forward
to its shareholders (in accordance with all requirements under applicable
Canadian securities and corporate law as well as any requirements of the TSX
Venture Exchange) a resolution, which, if approved by the shareholders, would
allow Shear Wind to become a party to the contingent equity commitment agreement
among Inveravante, BBVA and ICO for the Glen Dhu North Project, as described in
Shear Wind's news release dated October 7, 2010.


This news release shall not constitute an offer to sell or the solicitation of
an offer to buy any securities of Shear Wind in any jurisdiction.


About Shear Wind

Founded in 2005, Shear Wind is headquartered in Halifax, Nova Scotia and is
engaged in the exploration and development of renewable wind energy properties
in Canada. Shear Wind is focused on building a strong company based on a secure
and sustainable supply of clean wind energy. Shear Wind is committed to building
shareholder value governed by environmental stewardship. Inveravante Inversiones
Universales, S.L., an international corporation based in Spain, indirectly owns
62% of Shear Wind on a fully-diluted basis through Genera Avante Holdings Canada
Inc., following its investment in Shear Wind in November 2009. Additional
information on the various projects may be viewed on Shear Wind's website:
www.shearwind.com.


Forward-Looking Statements / Information

This news release may include certain forward-looking information, including
statements relating to business and operating strategies, plans and prospects,
using words including "anticipate", "believe", "could", "expect", "intend",
"may", "plan", "potential", "project", "seek", "should", "will", "would" and
similar expressions, which are intended to identify a number of these
forward-looking statements. More particularly, and without limitation, this
press release contains forward-looking statements concerning the commissioning
of wind turbines for the Glen Dhu Project, the projected operational date for
the Glen Dhu Project and details relating to the Glen Dhu Project.
Forward-looking information reflects current views with respect to current
events and is not a guarantee of future performance and is subject to risks,
uncertainties and assumptions. Actual results may differ materially from
information contained in the forward-looking information as a result of a number
of material factors, including failure to secure adequate financing to develop
projects of Shear Wind. Shear Wind undertakes no obligation to publicly update
or revise any forward-looking information contained in this news release, except
as may be required by applicable laws, rules and regulations. Readers are urged
to consider these factors carefully in evaluating any forward-looking
information.


Shear Wind Inc. trades on the TSX Venture Exchange under the symbol "SWX".

Grafico Azioni Shear Wind Inc. (TSXV:SWX)
Storico
Da Mag 2024 a Giu 2024

Grafico Azioni Shear Wind Inc. (TSXV:SWX)
Storico
Da Giu 2023 a Giu 2024