DBRS has announced it has:
assigned a rating of BBB (high) with a Stable trend to the Brookfield Renewable Power Inc. (BRP) prospective issue of $300 million of 6.132% Series 6 notes due November 30, 2016 (the Notes).
The Notes are being offered pursuant to a Prospectus Supplement to BRP’s Short Form Base Shelf Prospectus dated July 28, 2008, and a related Prospectus Supplement to be filed before November 27, 2009. The Notes will rank equally with all other unsecured indebtedness of BRP. Proceeds from the offering will be used to repay BRP’s remaining $280 million of 4.65% Series 1 notes due in December 2009, and for general corporate purposes. The offering is expected to close on November 30, 2009.
DBRS notes that BRP has recently signed a long-term power sale contract with the Ontario Power Authority (rated A (high), with a Stable trend) for all of the output from 16 of BRP’s electric generating facilities in Ontario, representing 837 megawatts (MW). This is supportive of BRP’s credit profile as it will substantially increase its long-term contracted position and provide greater cash flow certainty.
BAM commented in its 3Q09 Shareholders’ Report:
Brookfield Renewable Power has $262 million of public term notes that mature in December 2009. The substantial cash flow generated within this business and the high quality of its asset base facilitates access to capital markets notwithstanding current volatility, and in that regard we completed a public offering of C$300 million (US$244 million) of three-year notes in February 2009.
In April 2009 we exchanged a further C$100 million (US$82 million) of the December maturity for three-year notes. The remaining borrowings consist of public notes that mature in 2018 and 2036.
The CAD 300-million three-year notes were done at 8.75%, with a step up feature if the company gets downgraded by DBRS or S&P with a Canada Call at +175bp. We’ve come a long way, baby!
This entry was posted on Wednesday, November 25th, 2009 at 7:37 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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Brookfield Renewable Power Issues 7-Year Bonds at 6.132%
DBRS has announced it has:
BAM commented in its 3Q09 Shareholders’ Report:
The CAD 300-million three-year notes were done at 8.75%, with a step up feature if the company gets downgraded by DBRS or S&P with a Canada Call at +175bp. We’ve come a long way, baby!
This entry was posted on Wednesday, November 25th, 2009 at 7:37 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.