Northland Power Announces Pricing of $500 Million Inaugural Green Subordinated Notes

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This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated September 7, 2022 to its short form base shelf prospectus dated June 16, 2021.

TORONTO, June 14, 2023 (GLOBE NEWSWIRE) -- Northland Power Inc. (“Northland” or the “Company”) (TSX: NPI) today announced that it has priced a private placement offering (the “Offering”) in Canada of $500 million Fixed-to-Fixed Rate Green Subordinated Notes, Series 2023-A, due June 30, 2083 (the “Notes”). The Notes will carry a fixed coupon of 9.25% per annum until the first reset date on June 30, 2028. The Offering is expected to close on June 21, 2023.

The Notes are expected to have an after-tax cash cost in Euros to the Company of approximately 6.20% after the benefit of a Canadian dollar to Euro hedge and applicable corporate tax deductions. The Notes will be rated BB+ by both S&P and Fitch and will benefit from 50% equity treatment by both S&P and Fitch.

The Offering represents Northland’s first green corporate hybrid bond issuance pursuant to its Green Financing Framework, which was updated in May 2023 and for which Sustainalytics provided a second-party opinion. The Green Financing Framework and second-party opinion from Sustainalytics can be found on the Company’s website. HSBC acted as Sole Green Structuring Agent to Northland on its Green Financing Framework.

The Company intends to allocate the net proceeds from the Offering toward financing investments in “green” projects that meet the eligibility criteria of Northland’s Green Financing Framework, notably the Baltic Power offshore wind farm in Poland and the Oneida energy storage project in Ontario.

“This Offering forms part of our funding strategy in support of our investments to achieve financial close this year, namely the 1.2 GW Baltic Power offshore wind farm in Poland and 250 MW Oneida energy storage project in Ontario,” said Pauline Alimchandani, Northland’s Chief Financial Officer. “We are pleased with the support by the fixed income financial community to support these important investments and Northland’s goal of helping the global transition to renewable energy.”