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Synex International Inc. (TSX:SXI) refinances Cypress Creek and Mears Creek hydro projects
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  • Synex International Inc. (SXI) refinances Cypress Creek and Mears Creek hydro projects
  • Selkirk Advisory Group Inc. acted as an exclusive financial advisor to Synex for the purposes of the refinancing
  • Cypress Creek is a 2.8 MW run-of-river hydro project which commenced operations on July 31, 2009
  • Mears Creek is a 3.8 MW run-of-river hydro project which commenced operations on January 1, 2004
  • The loan carries an interest rate of 4.32 per cent and matures concurrently with an expiry of the 30-year Electricity Purchase Agreement for the Cypress Creek project in 2039
  • Synex International Inc. (SXI) is in the grey and is trading at C$0.28 at 10:26 am ET

Synex International Inc. (SXI) has refinanced its wholly-owned Cypress Creek and Mears Creek hydro projects.

Selkirk Advisory Group Inc. acted as an exclusive financial advisor to Synex.

Synex is also in the advanced stages of refinancing the Barr Creek hydro project (80 per cent owned by Synex and 20 per cent owned by Ehattesaht First Nation), with similar long-term non-recourse project financing.

Cypress Creek is a 2.8 MW run-of-river hydro project which commenced operations on July 31, 2009.

Mears Creek is a 3.8 MW run-of-river hydro project which commenced operations on January 1, 2004.

Each project is located on Vancouver Island and sells all electricity generated to British Columbia Hydro and Power Authority pursuant to a fixed-price Electricity Purchase Agreement.

The refinancing for both projects was completed by way of a single, long-term, fixed-rate project financing of approximately $6.6 million.

The loan carries an interest rate of 4.32 per cent and matures concurrently with expiry of the 30-year Electricity Purchase Agreement for the Cypress Creek project in 2039.

Principal and interest payments on the loan will be made semi-annually, in June and December of each calendar year.

"This successful refinancing represents the first step in restructuring Synex's balance sheet to better align with the long-term nature of our operating hydro projects," said Daniel J. Russell, President and Chief Executive Officer of Synex.

"With today's growing demand for clean energy and the potential for hydrogen to become the next super fuel, the Company is well-positioned for the future," added Mr. Russell.

Synex is a Vancouver, British Columbia-based company engaged in the development, acquisition, ownership and operation of renewable energy projects in Canada.

It has ownership interests in 12 MW of operating hydro projects in British Columbia and owns a Vancouver Island grid connection and utility carrying on business as Kyuquot Power Ltd.

Synex International Inc. (SXI) is in the grey and is trading at C$0.28 at 10:26 am ET.

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