VANCOUVER, Oct. 3, 2016 /PRNewswire/ - Alterra Power Corp. ("Alterra") is pleased to announce the completion of arrangements to refinance the $72 million bond (all amounts USD) held by Reykjavik Energy (Orkuveita Reykjavíkur, or "OR"), which matures in December 2016. The $36 million second tranche of the refinancing ("Tranche 2") will be supplied by Alterra's Executive Chairman and shareholder, Ross J. Beaty. An agreement for the first $36 million tranche ("Tranche 1") was executed with OR last week, as previously announced.

The Tranche 2 arrangements provide for a five-year maturity with no amortization, annual interest payments made at an 8.50% fixed coupon, and a 2.0% up-front fee that is recoverable under certain circumstances. As with Tranche 1, the new bond is issued from an Alterra subsidiary and is non-recourse to Alterra, with security consisting solely of 15% of the outstanding shares of Alterra's Icelandic subsidiary, HS Orka. The Tranche 2 terms are commercially reasonable, superior to all offers sourced from third parties and have been approved by Alterra's independent directors. The loan is subject to customary conditions precedent, including approval of the Toronto Stock Exchange. Both tranches of the refinancing are expected to be completed by mid-October.

John Carson, Alterra's CEO noted "We have structured both of the bond tranches with no prepayment penalties, as we expect to move this financing to a more optimal, combined facility in the future. Nonetheless we are pleased to complete these arrangements, which we've been actively pursuing for several months."

About Alterra Power Corp.
Alterra Power Corp. is a leading global renewable energy company, operating seven power plants totaling 819 MW of generation capacity including British Columbia's largest run-of-river hydro facility and largest wind farm, the recently completed Shannon and Jimmie Creek projects, and two geothermal facilities in Iceland. Alterra owns a 381 MW share of this capacity, generating over 1,700 GWh of clean power annually. Alterra also has an extensive portfolio of exploration and development projects and a skilled team of developers, builders and operators to support its growth plans.

Alterra trades on the Toronto Stock Exchange under the symbol AXY.

Cautionary Note Regarding Forward-Looking Information

Certain statements and information included in this news release are "forward-looking information" within the meaning of Canadian securities laws that involve risks and uncertainties. Forward-looking information relates to future events or future performance and reflects management's expectations and beliefs regarding future events as of the date hereof. Examples of forward-looking information in this news release include all statements regarding the refinancing of the bond originally issued to OR by Alterra's subsidiary, Magma Energy Sweden AB, including the timing of closing for the two bond tranches and management's expectations regarding future refinancings. Forward-looking information is based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection. Since forward-looking information relates to future events and conditions, by its very nature it requires making assumptions and involves inherent risks and uncertainties. Alterra cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking information. Material risk factors and assumptions include the fulfillment of conditions precedent, obtaining approval for the loan from the Toronto Stock Exchange, and Alterra's ability to refinance these amounts in the future, in addition to those set out in the management's discussion and analysis section of Alterra's most recent annual and quarterly reports and in Alterra's Annual Information Form for the year ended December 31, 2015. Although Alterra has attempted to identify important factors that could cause actual actions, events or results to differ materially from forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate and undue reliance should not be placed on forward-looking information. Except as required by law, Alterra undertakes no obligation to update any forward-looking information to reflect new information, subsequently or otherwise.

SOURCE Alterra Power Corp.