Capstone Infrastructure (TSE:CSE) said on Wednesday it has made progress on a number of fronts the company identified as priority actions for the first quarter, including raising C$138.1mln for projects.
On March 21 Capstone completed a C$83mln project-level financing for the Cardinal gas cogeneration facility, one of the company's key assets. The financing consists of a C$70mln term loan and a C$13mln letter of credit facility at attractive interest rates. The new C$70mln seven-year loan carries an interest rate of 2.68%, matures in 2023 and is scheduled to fully amortise over the remainder of the facility's non-utility generator agreement, which expires in 2034.
Concurrently with the Cardinal financing, the maximum amount of credit available under Capstone's revolving credit facility was reduced from C$90mln to C$60mln, and the drawn balance was fully repaid.
Capstone also closed a C$55.1mln non-recourse project financing for the 18-megawatt Grey Highlands clean wind facility on March 24. The construction plus five-year loan carries an annual interest rate of 2.89% for the first three years and 3.12% for years four and five and is scheduled to amortise over 18 years.
On the development side, the 10-megawatt Grey Highlands zero-emission people (ZEP) wind farm in Ontario was commissioned on Feb. 20. The 18-megawatt Ganaraska facility is expected to be commissioned next in the second quarter of this year.
On March 21, as previously reported, Capstone secured a final order from the British Columbia Supreme Court approving the plan of arrangement under which a subsidiary of a fund advised by iCON Infrastructure LLP, based in London, UK, is to acquire all issued and outstanding common shares of Capstone and Class B exchangeable units of Capstone's subsidiary MPT LTC Holding LP for C$4.90 cash per share or unit, as applicable.
The arrangement was also approved by Capstone securityholders at special meetings held earlier this month. The arrangement is expected to be completed by early May, following fulfilment of certain closing conditions and receipt of regulatory approvals.