Alterra PowerCorp. has agreed to refinance a portion of the approximately $72million maturing bond held by Reykjavik Energy.
The bond was set to mature in December. An Alterrasubsidiary issued the extended bonds, which will have a revised coupon of 5%and a maturity of 18 months, according to a company statement. The bond is nonrecourseto Alterra, with security consisting solely of about 17% of the outstandingshares of its Icelandic subsidiary HS Orka.
Reykjavik Energy will continue to hold 50%, or about $36million, of the outstanding principal, the company said.
Alterra also is in talks with a second lender to provide theremaining $36 million payment to complete the refinancing by mid-October.