DBRS Comments on Early Redemption of St. Clair Holding, ULC 4.881% Senior Secured Notes

DBRS Limited (DBRS) is commenting on the expected early redemption of the 4.881% Senior Secured Notes (the Notes) issued by St. Clair Holding, ULC, which indirectly owns Moore Solar LP and Sombra Solar, LP, two separate solar power sites located in Ontario (together, the Project). On November 21, 2017, DBRS confirmed the BBB rating on the Notes.

On June 29, 2018, a subsidiary of NextEra Energy Partners LP completed the sale of NextEra Energy Canada Partners (which indirectly owns the Project, in addition to four wind generation facilities in Ontario) to Cordelio Power. Headquartered in Toronto, Cordelio Power was launched in June 2018 by the Canada Pension Plan Investment Board (rated AAA with a Stable trend by DBRS) to complete the purchase of this portfolio. Cordelio Power is expected to prepay the Notes as part of a larger transaction involving the Project and two of the wind facilities (the two wind assets are not part of Trillium Windpower, LP (rated BBB with a Stable trend by DBRS)).

Part of the proceeds will be used to prepay the outstanding Notes at the full make-whole being the Canada Yield Price as defined in the Trust Indenture. The prepayment date will occur in or around mid-December 2018.

Notes:
The principal methodology is Rating Solar Power Projects, which can be found on dbrs.com under Methodologies.

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