Maxim Power Corp. entered into a credit agreement of up to C$44 million with ATB Financial for 35 months to support the under-construction, 204-MW M2 natural gas-fired power plant in Alberta and to replace cash collateralized under an C$8 million credit facility.

Financing for the power plant is provided under three credit facilities, according to a Dec. 19 news release.

Under the credit facilities, Maxim can borrow up to C$30 million under a construction loan with a 35-month term and up to C$10 million under a revolving credit facility for general corporate purposes upon completing construction. Maxim will have access to a third revolving credit facility to finance certain short-term working capital requirements of up to C$4 million.

Maxim had entered into a C$75 million revolving, one-year convertible loan in September to finance the full construction of the project, and about C$41 million of it is outstanding.

The company plans to repay about C$20 million under the convertible loan by Dec. 31 by drawing on the ATB credit agreement.

Construction of the M2 plant is 67% complete, and the plant is on track to begin operation in the second quarter of 2020, according to the company. Maxim expects construction costs to be about C$147 million.