The Macquarie Power & Infrastructure Income Fund earlier this week completed the refinancing of two of its credit facilities with a total value of $162.5 million.
The new facility, set to mature in June 2012, entails a $121.9 million term facility and a $40.6 million revolving facility, in addition to an “accordion” feature which offers the fund the opportunity to expand the size of the facility to $200 million in the future. It replaces the fund’s Clean Power subsidiary’s $150 million unsecured senior credit facility, scheduled to mature in June 2010, and its Cardinal subsidiary’s $50 million senior credit facility, scheduled to mature in May 2011.
Michael Bernstein, the fund’s interim president and chief executive, said of the refinancing: “While we are subject to incrementally higher pricing due to current credit market conditions, the fact that we completed this refinancing in a challenging market environment underlines the quality of our infrastructure businesses and the confidence of the financial community in the stability of our operations.”
The fund said it does not anticipate that the refinancing will materially impact its 2009 payout ratio, currently expected to remain at $1.05 per unit.
The fund invests in essential infrastructure assets, with a specific emphasis on power infrastructure, across North America. It currently holds stakes in gas cogeneration, wind, hydro and biomass power generating facilities, as well as a 45 percent interest in a care home in Canada.