BOSTON, MASSACHUSETTS -- (MARKET WIRE) -- 10/24/08 -- Atlantic Power Corporation (TSX: ATP.UN) ("Atlantic Power" or the "Company") announced today that it has extended through 2013 its forward purchases of Canadian dollars in amounts sufficient to make the current level of monthly distributions on its Income Participating Securities ("IPS").
"We are very pleased to have extended our strategy of mitigating currency risk for another two years through 2013," commented Barry Welch, Atlantic Power President and CEO. "As a result of the recent changes in currency exchange rates, we were able to lock in approximately $21 million of additional cash flow for the 2012-13 period when compared to the one-to-one exchange rates that existed only a few months ago."
The Company executed these forward Canadian dollar purchases for 2012 and 2013 at Cdn$1.14 and Cdn$1.23, respectively, per U.S. dollar. As a result of the new currency hedges, the Company's cash on hand and projected future cash flows from existing projects are sufficient to meet the current level of cash distributions to IPS holders through 2015 without including additional cash flows from the pending Auburndale acquisition or any future potential acquisitions. This represents an improvement from the Company's previous projections that had indicated the current level of cash distributions to IPS holders could be made through 2014.
About Atlantic Power
Atlantic Power Corporation owns interests in a diversified portfolio of 13 power generation projects and one transmission line located in major markets in the United States. Atlantic Power's objectives are to sustain and its cash distributions and increase the long term value of the company by enhancing the performance of its existing assets and by making accretive acquisitions.
When used in this news release, the words "anticipate", "expect", "project", "believe", "estimate", "forecast" and similar expressions are intended to identify forward-looking statements, which include statements relating to the impact of the currency hedges on Atlantic Power's future cash distributions.
Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to the anticipated financial and operating performance of the Company's projects. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements contained in this news release represent our expectations as of the date of this press release and, accordingly, are subject to change after such date. Except as required by applicable law, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts: Atlantic Power Corporation Barry Welch (617) 977-2700 Email: firstname.lastname@example.org Source: Atlantic Power Corporation