Emera Demonstrates Benefit of Federal Loan Guarantee for Nova Scotia Electricity Customers
HALIFAX, Nova Scotia - Today, at an event hosted by the Federal Government, Emera (TSX: EMA) announced that with the backing of a Federal Loan Guarantee, Nova Scotia electricity customers will save approximately $325 million over the life of the Maritime Link Project.
This is the result of Maritime Link Financing Trust successfully raising $1.3 billion at a coupon interest rate of 3.5% for a period of 38 years. Once all related costs are included, the effective all in debt financing rate will be approximately 3.85%. The funds raised will be used for the development and construction of the Maritime Link.
This is a major milestone for the Maritime Link Project and demonstrates the tremendous benefit of a Federal Loan Guarantee for Nova Scotia electricity customers.
“Today is a great day for Nova Scotia’s electricity customers,” said Chris Huskilson, Emera’s President and CEO. “With financing now in place, Phase 1 of the Lower Churchill Project and the Maritime Link will become game-changers for Atlantic Canada and beyond.”
The Government of Canada committed to a Federal Loan Guarantee in 2011. Terms were finalized in November 2012. With the issuance of the guarantee, Nova Scotia electricity customers will now have the full benefit of the Federal Government’s AAA credit rating.
Maritime Link Financing Trust was created by Emera to facilitate the issuance of the Federal Loan Guarantee. The Trust has issued approximately $1.3 billion in bonds. This is the maximum that can be borrowed under the terms of the Federal Loan Guarantee agreement. The bonds will mature on December 1st, 2052.
“I would like to thank the Government of Canada, as well as the Governments of Nova Scotia, and Newfoundland and Labrador, as well as our partners, Nalcor Energy, for their commitment and support for this legacy project,” said Huskilson. “We are well on our way to helping transform the electricity sector for the entire region.”
Forward Looking Information
This news release contains forward-looking information with respect to Emera. By its nature, forward-looking information requires Emera to make assumptions and is subject to inherent risks and uncertainties. There is significant risk that predictions, forecasts, conclusions and projections that constitute forward-looking information will not prove to be accurate, that Emera’s assumptions may not be correct and that actual results may differ materially from such forward-looking information. Detailed information about these assumptions, risks and uncertainties is included in Emera’s securities regulatory filings, which can be found on SEDAR at sedar.com.
Emera Inc. is an energy and services company with $8.88 billion in assets and 2013 revenues of $2.2 billion. The company invests in electricity generation, transmission and distribution, as well as gas transmission and utility energy services. Emera's strategy is focused on the transformation of the electricity industry to cleaner generation and the delivery of that clean energy to market. Emera has investments throughout northeastern North America, and in four Caribbean countries. Approximately 90% of the company's reported net income in 2013 came from regulated investments. Emera common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A., EMA.PR.C., and EMA.PR.E. Additional information can be accessed at emera.com, or on SEDAR at sedar.com.
About The Maritime Link Project
The Maritime Link is a proposed 500 MW high voltage direct current (HVdc) transmission line between Nova Scotia and Newfoundland and Labrador. The Project will include two 170 km subsea cables across the Cabot Strait, with almost 50 km of overland transmission in Nova Scotia and close to another 300 km of overland transmission on the island of Newfoundland. To learn more visit www.emeranl.com.
Source: Emera Inc.
Dina Bartolacci Seely, 902-428-6059
Jill Hennigar, 902-428-6486