PrefBlog

Standard & Poor’s has announced:

• •Innergex Renewable Energy Inc. has announced it intends to acquire Alterra Power Corp. for approximately C$1.1 billion.
• •We expect Innergex to finance the transaction via a combination of common share exchange and cash.
• •We are placing our ratings, including our ‘BBB-‘ long-term corporate credit rating, on the company on CreditWatch with positive implications.
• •The CreditWatch placement reflects our view that the transaction, once complete, will increase Innergex’s scale and diversity by geography and fuel-type, and accelerate the company’s growth profile.

…
Innergex has announced it intends to acquire Alterra Power Corp. for approximately C$1.1 billion. We expect Innergex to finance the transaction via a combination of common share exchange and cash. Giving full effect to the proration, the Alterra shareholders can expect to receive approximately 25% in cash and 75% in Innergex common shares. Based on Innergex’s common share closing price of C$14.83 on the Toronto Stock Exchange Oct. 27, 2017, the consideration of each Alterra common share represents C$2.06 in cash and 0.4172 Innergex common shares. A five-year, C$150 million subordinated unsecured term loan from Caisse de depot et placement du Quebec will fund the cash portion of the deal. We expect the incremental debt’s impact on credit ratios to be neutral, because the incremental cash flow from the operating assets offsets this.

Innergex has set up a page devoted to the deal.

Affected issues are INE.PR.A and INE.PR.C

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