RBC finances Axium Infrastructure and Manulife's C$922M acquisition of a minority interest in 303 MW of hydro facilities from AltaGas

Date Closed

June 22, 2018

Lead Office

Toronto

Value

922.00 Million CAD

On June 22, 2018, Axium Infrastructure (Axium) and Manulife Financial Corporation (Manulife), through a special-purpose acquisition vehicle Northwestern Hydro Acquisition Co Inc., completed their acquisition of a 35% indirect equity interest in the Northwest British Columbia Hydroelectric Facilities (the Facilities) from AltaGas Ltd. (AltaGas). The Facilities consist of the Forrest Kerr hydroelectric facility (installed capacity of 214 MW), the Volcano Creek hydroelectric facility (installed capacity of 17 MW) and the McLymont Creek hydroelectric facility (installed capacity of 72 MW). The Facilities, which are located in northwestern British Columbia, sell power to BC Hydro pursuant to long-term power purchase agreements.

The aggregate purchase price for the minority interest was approximately  C$922 million. Royal Bank of Canada provided debt financing to the Axium/Manulife consortium on the transaction.

The Royal Bank of Canada is a Canadian multinational financial services company and the largest bank in Canada by market capitalization.

Royal Bank of Canada was represented by McCarthy Tétrault LLP with a team consisting of Gordon Baird, Heba Al-Shakarchi and Taha Qureshi (Financial Services), Paul Cassidy (Environmental and Indigenous), David Woollcombe (Corporate/M&A), Joy Ren, Madeleine Hawkins and Tiffany Misri (Real Property) and Kerry Lui (Energy).

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