Atlantic PowerLP secured two creditfacilities totaling $900.0 million to prepay an existing loan amongother things, parent Atlantic PowerCorp. announced April 13.
The facilities comprise a $700 million senior secured term loandue April 2023 and a $200 million senior secured revolving credit facility due April2021.
Proceeds of the new term loan will be used to initially pay $447.9million plus interest of an existing senior secured term loan of an APLP subsidiary;to pay transaction expenses; and to make a distribution to the company from theremaining proceeds of about $106 million, which may be used for general corporatepurposes.
The loans may also be used to redeem C$67.2 million of AtlanticPower's 6.25% series A debentures due March 2017 and C$75.8 million of 5.6% seriesB debentures due June 2017.
"Following the planned redemption of our 2017 convertibledebentures, we will have no corporate debt maturities prior to 2019. Although ourcash flow allocation will be focused on additional debt reduction, we now have adequatefinancial flexibility to invest in some capital-light growth opportunities and tocontinue making discretionary investments in our power plants," Atlantic Powerpresident and CEO James Moore Jr. said in a statement.