Date Closed

October 12, 2012

Lead Office

Montréal

Value

68.60 Million CAD

On October 12, 2012, Innergex Renewable Energy Inc. ("Innergex" or the "Corporation") completed the acquisition of the Brown Lake and Miller Creek run-of-river hydroelectric facilities located in British Columbia.

Brown Lake is a 7.2 MW facility commissioned in 1996 and located on Crown land near Prince Rupert in the North Coast region of the province. It has an average annual production of 51,800 MWh, all of which is sold to BC Hydro under a 20-year power purchase agreement that expires in 2016. The Corporation also announced its intention to double the plant's installed capacity to 14.4 MW and increase expected average annual production by 27,000 MWh, for an additional investment of approximately C$20.0 million.

Miller Creek is a 33 MW facility commissioned in 2003 and located on Crown land near Pemberton, in the Lower Mainland region of the province, in close proximity to several other of the Corporation's hydroelectric facilities. It has an average annual production of 97,900 MWh, all of which is sold to BC Hydro under a 20-year power purchase agreement that expires in 2023, with BC Hydro holding two consecutive five-year renewal options. The Corporation also announced that it plans to undertake an C$8.5 million capital expenditure program to upgrade the penstock and water intake, which should increase the plant's expected average annual production by 4,895 MWh and reduce operating costs. However, this capital expenditure program, which was initially expected to occur in the fall of 2012, has been postponed to the fall of 2013, given the longer-than-expected closing process and seasonal constraints.

The final purchase price of C$68.6 million and associated transaction costs of this acquisition were financed by a combination of drawdowns on the Corporation's revolving term credit facility and a portion of the proceeds from a private placement of common shares completed in July 2012.

Innergex, headquartered in Longueuil, Québec, is a developer, owner and operator of run-of-river hydroelectric facilities, wind energy, and solar farms in North America.

McCarthy Tétrault LLP represented Innergex, with a team led by Marc Dorion.