Cube Hydro closes on US$140 million in long-term notes

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In a press release on Oct. 16, Cube Hydro North America I LLC, a wholly-owned subsidiary of Cube Hydro Partners LLC (Cube Hydro), announced it has successfully closed on the issuance of US$140 million Senior Secured Notes, due October 2025.

The Notes were placed through a private placement launched Sept. 15, and received an investment grade rating and were priced at a 4.75% coupon, which is payable semiannually in 2016 beginning April and October.

Cube Hydro is a joint venture formed by Enduring Hydro that is a portfolio company of the ISQ Global Infrastructure Fund L.P. and its affiliated funds. The company targets investments in mid-sized greenfield and operating hydro projects in the U.S. and Canada.

Cube Hydro acquired two small hydroelectric plants in New York from Burrows Paper Corp. in January.

The plants were acquired when Cube Hydro-New York, bought Burrows’ ownership interests in Lyonsdale Associates. Lyonsdale owns and operates a 3-MW hydro facility in Lyonsdale, N.Y., and is the general partner of Little Falls Hydroelectric Associates, which owns and operates the 13.6-MW Little Falls hydro facility in Little Falls, N.Y.

“The response from investors exceeded our expectations and demonstrates our ability to raise low-cost financing to support investments in clean, carbon-free hydroelectric generation,” said Kristina Johnson, Cube Hydro chief executive officer.

“Investors continue to show a strong appetite for attractive investment opportunities in clean energy such as our hydroelectric generation portfolio.”

Cube Hydro currently owns a portfolio of 13 hydroelectric plants with a capacity of 106 MW located in New York, Pennsylvania, Virginia and West Virginia with expected annual generation of more than 340 GWh. Prior to the issuance, the portfolio was funded nearly 100% with equity.
 

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