EPCOR Power L.P. Complete US$225 million private placement of senior notes
EDMONTON, Alberta - August 15, 2007 (TSX: EP.UN) - EPCOR Power L.P. (collectively with its subsidiaries, the “Partnership”) announced today that its indirect subsidiary, EPCOR Power (US) G.P. (“the Issuer”), has closed a US$225 million private placement of senior notes. The proceeds from the transaction will primarily be used to repay existing debt, including the balance of the bridge acquisition credit facility due in October 2009 incurred to finance the acquisition of Primary Energy Ventures LLC (“PEV”) and for general corporate purposes.
“This US dollar private placement completes our long-term debt refinancing for the acquisition of PEV,” said Stuart Lee, CFO, EPCOR Power Services Ltd., the general partner of the Partnership. “The transaction improves the Partnership’s financial flexibility and further extends its overall maturity profile.”
The US$225 million in senior notes have been issued in two tranches consisting of 10 and 12 year maturities at a weighted average interest rate of 5.90%. The US$150 million in 10-year notes carry a coupon of 5.87% and the US$75 million in 12-year notes carry a coupon of 5.97%.
The notes are senior unsecured obligations of the Issuer and are guaranteed by the Partnership and Curtis Palmer Inc., an indirect subsidiary of the Partnership, and will rank pari passu in right of repayment with the Partnership’s other senior unsecured indebtedness.
Banc of America Securities LLC and HSBC Securities (USA), Inc. acted as the lead and joint book runners, respectively, in connection with the private placement of securities.
Established in 1997, EPCOR Power L.P. is a limited partnership organized under the laws of the Province of Ontario. The Partnership wholly owns and operates a portfolio of 20 power generation assets in Canada and the United States with total net generating capacity of 1,287 megawatts and more than three million pounds per hour of thermal energy. The Partnership also owns a 15.4 percent interest in Primary Energy Recycling Holdings LLC ("PERH"). PERH wholly owns four recycled energy assets in the United States with an aggregate generation capacity of 284 megawatts and nearly two million pounds per hour of thermal energy, and holds a 50 percent interest in a pulverized coal facility. Primary Energy Ventures LLC, a wholly owned subsidiary of the Partnership, manages and operates these facilities for PERH. The Partnership's web-site is http://www.epcorpowerlp.ca/
For further information on the Partnership contact:
Media Inquiries: Tim LeRiche (780) 969-8238
Unitholder & Analyst Inquiries: Sam Myers (403) 717-8179