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Atlantic Power narrows FY'16 earnings guidance

Atlantic PowerCorp. lowered its 2016 earnings guidance May 5 citing its recentdecision to refinanceinterest expense and debt repayment.

"Our recent refinancing transaction has significantbenefits for the company, despite being done at a higher interest rate due todifficult market conditions. After redeeming our 2017 convertible debentures nextmonth, we will have no corporate debt maturities prior to 2019. We also wereable to extend the maturity dates of the new revolver and term loan to 2021 and2023, respectively. As a result, our maturity profile has been considerablyreshaped," Atlantic Power President and CEO James Moore Jr. said in astatement.

As a result, full-year 2016 adjusted free cash flow guidancehas been reduced to negative $20 million to $0 million while adjusted cashflows from operating activities is now targeted at a range of $95 million to$115 million.

The company was previously targeting full-year 2016 adjustedfree cash flow of $20 million to $40 million and adjusted cash flows fromoperating activities of $110 million to $130 million.

Project adjusted EBITDA guidance remains at $200 million to $220million.

Atlantic Power made the announcement in its first-quarter2016 earnings release, booking $62.5 million in project adjusted EBITDA for thequarter — up from $58.6 million in the first quarter of 2015 given higher waterflows at the Curtis Palmerand Mamquamfacilities.

First-quarter 2016 adjusted free cash flow increased to $11.8million from $3.9 million in the corresponding quarter of 2015 while adjustedcash flows from operating activities increased $6.0 million year over year to$37.3 million. The financial metrics were helped by the higher project adjustedEBITDA and a reimbursement of a customer-owned construction project at Morriswhich benefited cash flow by $4.7 million.

The company reported first-quarter 2016 project income of$28.7 million on project revenues of $106.4 million; it had booked $21.5million in project income during the same quarter of 2015 on project revenuesof $111.3 million.

Atlantic Power posted a first-quarter 2016 net lossattributable to the company of $14.9 million, or 12 cents per share, comparedto a net income of $17.5 million, or 14 cents per share, in the same period of2015.