Toronto-based Northland Power completes conversion from income trust to corporation; company owns or has interest in nine power projects totaling 1,050 MW including natural gas, wind, biomass facilities
January 5, 2011
– Northland fPower Inc. ("Northland") (TSX:NPI)(TSX:NPI.DB)(TSX:NPI.DB.A)(TSX:NPI.PR.A) announced today that the conversion of Northland Power Income Fund (the "Fund") from an income trust to a corporation became effective on January 1, 2011.
As a result, Northland is now the Canadian public corporation which will continue to carry on the business of the Fund. The Fund's trust units have been converted into common shares of Northland on a one-for-one basis and will trade under the TSX symbol NPI. The Series 1 Preferred Shares of Northland Power Preferred Equity Inc. have been converted into Series 1 Preferred Shares of Northland on a one-for-one basis and will trade under the TSX symbol NPI.PR. The two series of convertible debentures of the Fund have become convertible debentures of Northland and will continue to trade under the TSX symbols of NPI.DB and NPI.DB.A.
As an income trust, Northland and its Unit holders benefited under Canadian income tax law from advantages available to income trusts. Canadian legislation phased out those advantages at December 31, 2010.
In 2009, the Fund merged with its manager, Northland Power Inc. In addition to internalized management, this merger brought the manager's development expertise and a robust pipeline of thermal, solar, wind and hydro development projects.
"Corporatization is the final step in our strategy to become a fully integrated developer, owner and operator of power generation facilities," said Northland CEO John Brace. "Northland is proud of its unbroken record of paying monthly cash distributions of $0.09 per unit as an income trust, and management is committed to paying the same monthly amount as dividends per common share, even as we invest in building new generation capacity."
Today, Northland's operating assets total 815 megawatts (MW) of generating capacity. The company's development pipeline totals 3,300 MW, of which 683 MW have power contracts, including 446 MW under construction.
Northland is currently building the 100 MW Mont Louis wind farm in Quebec's Gaspésie region, the 260 MW North Battleford natural-gas-fired combined cycle facility and the 86 MW Spy Hill natural-gas-fired peaking plant, both in Saskatchewan. All three projects are on budget and on or ahead of schedule. In aggregate, the projects represent a capital cost of approximately $1 billion, which has been fully funded. All energy produced by these projects will be sold under long term contracts to provincially-backed power authorities.
When all projects under construction are completed in 2013, Northland's net generating capacity will exceed 1,250 megawatts, an increase of over 50%.
Northland owns or has an economic interest in 9 power projects totalling over 1,050 MW (net 815 MW). Northland's assets comprise natural-gas-fired plants which efficiently and cleanly produce electricity and steam as well as facilities generating renewable energy from wind and biomass. Sales are made almost entirely under long-term contracts with a current weighted average duration of 14 years. Northland's plants are located in Canada, the United States and Germany. In addition, Northland has the 86 MW Spy Hill project, 260 MW North Battleford project and 100 MW Mont Louis wind farm in construction, and 216 MW of wind, solar and run-of-river hydro projects awarded under the Ontario Power Authority's feed-in-tariff program in advanced stages of development. Northland also has a diverse development portfolio of high-quality 'Clean and Green' energy projects, including wind, solar, natural gas, and hydro assets to support its strategy of sustainable growth primarily through internally developed opportunities.
Northland's common shares, preferred shares and two series of convertible debentures, which trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A, NPI.DB and NPI.DB.A, respectively, are qualified investments for RRSPs, RRIFs and DPSPs under the Canadian Income Tax Act. Northland has in place a dividend re- investment plan that allows common shareholders who are residents of Canada to automatically have their monthly cash dividends reinvested in additional common shares. Participants do not pay any costs associated with the plan, including brokerage commissions. For further information or to join the plan, contact your financial advisor or broker.