05.03.2024 01:11:20 - dpa-AFX: GNW-Adhoc: Northland Announces Sale of La Lucha Solar Facility
TORONTO, March 04, 2024 (GLOBE NEWSWIRE) -- Northland Power Inc. (Northland)
(TSX: NPI) announced today it has entered into an agreement to sell the La Lucha
solar facility to Cometa Energía, S.A. de C.V., wholly owned by Saavi Energía
(Saavi). La Lucha is a 130-megawatt solar facility located in Durango, Mexico
that is wholly owned by Northland. The facility achieved commercial operations
in June 2023.
"This transaction reflects Northland's strategy to recycle assets from non-core
markets to generate liquidity and simplify our overall business towards
operating in core markets," said Mike Crawley, President and Chief Executive
Officer of Northland.
The sale is expected to close in 2024, upon satisfaction of customary closing
conditions, including finalizing insurance placement, lender approval and
approval of the Federal Economic Competition Commission (COFECE), required under
applicable anti-trust laws in Mexico. Northland expects to receive approximately
$205 million in cash after taxes, transaction fees and other customary
adjustments. Proceeds will be initially used towards repayment of amounts drawn
on the Company's revolving credit facility and for general corporate purposes.
FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute forward-looking
information within the meaning of applicable securities laws ("forward-looking
statements") that are provided for the purpose of presenting information about
management's current expectations and plans. Readers are cautioned that such
statements may not be appropriate for other purposes. Northland's actual results
could differ materially from those expressed in, or implied by, these forward-
looking statements and, accordingly, the events anticipated by the forward-
looking statements may or may not transpire or occur. Forward-looking statements
include statements that are not historical facts and are predictive in nature,
depend upon or refer to future events or conditions, or include words such as
"expects," "anticipates," "plans," "predicts," "believes," "estimates,"
"intends," "targets," "projects," "forecasts" or negative versions thereof and
other similar expressions or future or conditional verbs such as "may," "will,"
"should," "would" and "could." These statements may include, without limitation,
statements regarding the closing of the La Lucha transaction, the amount and use
of proceeds, and the anticipated satisfaction of closing conditions. There is a
risk that delay or failure to achieve the foregoing could affect Northland's
earnings, cash or credit position and capital funding needs. These statements
are based upon certain material factors or assumptions that were applied in
developing the forward-looking statements, including the provisions of contracts
to which Northland or a subsidiary is a party, management's current plans,
current conditions and expected future developments, the ability to obtain
necessary approvals, satisfy any closing conditions, satisfy any project finance
lender conditions to closing sell-downs, as well as other factors, estimates and
assumptions that are believed to be appropriate in the circumstances. Although
these forward-looking statements are based upon management's current reasonable
expectations and assumptions, they are subject to numerous risks and
uncertainties. Some of the factors include, but are not limited to, risks
associated with sales contracts, the emergence of widespread health emergencies
or pandemics, counterparty risks, Northland's ability to resolve issues/delays
with the relevant regulatory and/or government authorities, disposition risk,
international activities, cybersecurity, data protection and reliance on
information technology, reputational risk, bribery and corruption risk,
terrorism and security, legal contingencies, and the other factors described in
the "Risks Factors" section of Northland's Management's Discussion and Analysis
and Annual Information Form for the year ended December 31, 2023, which can be
found at www.sedarplus.ca (http://www.sedarplus.ca) under Northland's profile
and on Northland's website at northlandpower.com. Northland has attempted to
identify important factors that could cause actual results to materially differ
from current expectations, however, there may be other factors that cause actual
results to differ materially from such expectations. Northland's actual results
could differ materially from those expressed in, or implied by, these forward-
looking statements and, accordingly, no assurances can be given that any of the
events anticipated by the forward-looking statements will transpire or occur,
and Northland cautions you not to place undue reliance upon any such forward-
looking statements.
The forward-looking statements contained in this release are, unless otherwise
indicated, stated as of the date hereof and are based on assumptions that were
considered reasonable as of the date hereof. Other than as specifically required
by law, Northland undertakes no obligation to update any forward-looking
statements to reflect events or circumstances after such date or to reflect the
occurrence of unanticipated events, whether as a result of new information,
future events or results, or otherwise.
For further information, please contact:
Dario Neimarlija, Vice President of FP&A and Investor Relations
647-288-1019
investorrelations@northlandpower.com
(mailto:investorrelations@northlandpower.com)
northlandpower.com (https://www.northlandpower.com/)
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