Northland Power Inc. announced it has entered into a $1.25 billion corporate credit facility with a syndicate of 12 financial institutions led by Canadian Imperial Bank of Commerce, Bank of Montreal and National Bank Financial.

The new credit facility consists of a $1 billion revolver and $250 million term loan, and replaces Northland’s existing $700 million syndicated credit facility (which comprised a $450 million revolver and $250 million term loan).  The increase in borrowing capacity is largely a result of cash flows generated by Gemini and Nordsee One, which both began commercial operations in 2017.

The revolver will be used to fund development opportunities and acquisitions, provide letters of credit to secure obligations that would otherwise be funded in cash, and for general corporate purposes including working capital.  The revolver includes a $500 million accordion feature which would, if exercised, provide Northland with access to additional revolving credit.  The revolver matures in June 2023 and includes annual renewal provisions.  The $250 million term loan matures in December 2019 with an annual renewal provision.

Northland CFO Paul Bradley commented, "This new facility confirms the Canadian and international financial community's confidence in Northland, highlights the quality and stability of our cash flows, and provides a solid foundation to execute on our commitment to growth."