Mr. Marc Jasmin reports

BORALEX CLOSES FINANCING OF 100 MILLION EUROS IN FRANCE

Boralex Inc. has closed a financing for the Mont de Bagny (24 megawatts), Artois (23.1 megawatts) and Voie des Monts (10 megawatts) wind farms in France for a total amount of approximately 100 million euros ($145-million), including 11.2 million euros in financing for value-added-tax receivable. This financing is provided by Credit Industriel et Commercial (Groupe Credit Mutuel) and BPI France Financement.

The financing is based on a debt/equity ratio of 80 per cent and consists of a 10-year, 52.4-million-euro tranche at a fixed rate of 0.8 per cent and a 15-year, 37-million-euro tranche at a variable rate of about 2.5 per cent over the entire loan term, 90 per cent of which will be covered by an interest-rate hedging contract. The average interest rate over the 15-year period will be approximately 1.77 per cent.

Loan disbursement is subject to certain customary conditions, which should be fulfilled soon.

Lastly, construction has already begun on all the projects, and they are expected to be commissioned by the end of 2017, except for the Artois wind farm, whose commissioning is slated for the end of the second quarter of 2017.

We seek Safe Harbor.