Montréal (Québec), July 28, 2003
- Boralex Power Income Fund (TSX, BPT.UN) (the
“Fund”) announces the successful closing
of the issue and sale of subscription receipts
pursuant to the agreement concluded July 9, 2003
with a syndicate of underwriters jointly led by
National Bank Financial and TD Securities Inc.
The subscription receipts are exchangeable on
the basis of one receipt for one unit of the Fund
upon the closing of the acquisition of two hydroelectric
power stations at Hudson Falls and South Glen
Falls in the State of New York, which should occur
within 90 days. The closing is subject to customary
closing conditions, including the approval of
the Federal Energy Regulatory Commission and various
other consents and approvals.
Following the exercise by the syndicate of underwriters
of the option granted by the Fund for the purchase
of 1,625,000 additional subscription receipts,
a total of 18,500,000 subscription receipts were
sold at a price of $9.80 each for aggregate proceeds
of $181.3 million. The underwriters’ commission
for the issue is $9.065 million with the net proceeds
realized by the Fund equaling $172.2 million.
The net proceeds of the issue combined with the
increase of the Fund’s credit facilities
will finance in its entirety the acquisition of
the two hydroelectric power stations with a total
installed capacity of 59.7 MW
Boralex Power Income Fund is an unincorporated
open-ended trust that indirectly owns eight power
generating stations located in the province of
Québec producing energy from different
sources including wood-residue or natural gas-fired
thermal and cogenerating facilities as well as
hydroelectric power stations. In total, these
power stations have an installed capacity of 131.0
MW. The Fund’s units are listed for trading
on The Toronto Stock Exchange under the symbol
BPT.UN.
The statements contained in this news release
that are forward-looking are based on current
expectations, and are subject to a number of uncertainties
and risks, and actual results may differ materially.
These uncertainties and risks include, but are
not limited to: the dependence on certain key
customers, competitive pressures and changes in
market activity, risks associated with international
operations and foreign exchange, legal proceedings,
environmental, health and safety and other regulatory
requirements. Further information can be found
in the disclosure documents filed by Boralex Power
Income Fund with the securities regulatory authorities,
available at www.sedar.com.
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