Calgary: Pristine Power Inc. announced August 25 that it had achieved financial close and funding for its 400 MW York Energy Centre project, a (nominal) 400 MW natural gas fired peaking facility to be located in the Township of King under a 20 year peaking generation contract with the Ontario Power Authority.
Under the terms of the financing, a syndicate of financial institutions, led by Union Bank, ING Capital LLC and Royal Bank of Canada and including Bank of Nova Scotia, Siemens Financial Ltd., National Bank of Canada, Canadian Western Bank and Allied Irish Banks, PLC, will provide construction and term non-recourse debt financing of $270.2 million, as well as a $60 million letter of credit facility and a $3 million operating working capital facility.
Commercial operations are expected to begin in the second quarter of 2012.
Under the terms of the York Energy Centre partnership agreement, Pristine earned a development fee of $3 million from the project. A further $3 million fee is due from the project upon commencement of commercial operations. Pristine’s equity contribution for its 50% share of the project totaled $26.1 million.
An agreement was announced in September for the purchase of Pristine Power by Fort Chicago Energy Partners L.P.