H2O Power LP completes $400M private placement, obtains credit facilities

On March 31, 2017, H2O Power Limited Partnership — a joint venture between the Public Sector Pension Investment Board (PSP) and BluEarth Renewables Inc. — completed a $400-million private placement of fixed-rate senior secured notes due November 30, 2029, to finance the long-term operation of eight hydroelectric generating facilities in Ontario. With a total installed capacity of approximately 142 MW, H2O Power is the third-largest provider of hydroelectric power in Ontario. BMO Nesbitt Burns Inc. and TD Securities Inc. acted as placement agents for the offering.

Concurrently with the closing of the note offering, H2O Power also obtained $33.5 million of senior secured credit facilities with The Toronto-Dominion Bank and Bank of Montreal. The notes and the credit facilities rank pari passu. The credit facilities will be used for the purposes of general working capital and issuing certain letters of credit.

H2O Power Limited Partnership was represented by Blake, Cassels & Graydon LLP with a team including Ian Binnie, Philippe Bourassa, Patrick Menda, Anthony Lanouette-Marier and Lisha Li (corporate/commercial/project finance), Joe Zed and Kendall Grant (securities), John Hutmacher (real estate) and Sharon Wong (regulatory).

BMO and TD were represented by Davies Ward Phillips & Vineberg LLP with a team including Carol Pennycook, Gillian Stacey, Anthony Spadaro and Angela Susac (banking and project finance), Sarah Powell (environmental and regulatory) and Steven Willard (real estate).

PSP was represented by Catherine Isabelle, its Director of Legal Affairs.