Algonquin Power renews $142m loan facility

Algonquin Power & Utilities Corp. has received approval on the renewal of a $142 million, three-year secured revolving credit facility, enabling it to take the next step in its plans to purchase two utility companies in New Hampshire.Algonquin’s wholly owned subsidiary, Liberty Energy Utilities Co., announced Dec. 9 that it was seeking to acquire all issued and outstanding shares of Granite State Electric Company of Salem and EnergyNorth Natural Gas Inc., subsidiaries of National Grid, for $285 million.”The renewal of this credit facility is a major element of our capital structure to support our operations and to maintain a strong, investment grade capital structure,” said David Bronicheski, chief financial officer. “Our recent debt financing announcements, including the renewal of this facility, demonstrate the strong support APUC has in the debt capital markets for our business plans and growth initiatives.”Granite State Electric and EnergyNorth serve a combined 126,000 customers in New Hampshire.Algonquin currently owns several hydroelectric facilities in New Hampshire, including Gregg Falls on the Piscataquog River in Goffstown; Mine Falls on the Nashua River in Nashua; as well as facilities on the Salmon River in Milton, the Suncook River in Pembroke, and several on the Winnipesaukee River, in Lochmere, Tilton, Franklin and Lakeport.Algonquin officials say they intend to keep employees at both New Hampshire utilities.The company said the deal is expected to close in the fall of 2011. – CINDY KIBBE/NEW HAMPSHIRE BUSINESS REVIEW