NPI.PR.A Northland Power Inc

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Northland Power Inc. ("Northland" or "the Company")
(TSX:NPI)(TSX:NPI.PR.A)(TSX:NPI.PR.C)(TSX:NPI.DB.A)(TSX:NPI.DB.B) announces
closing of project financing for 600 MW project Gemini.




--  At EUR2.8 billion (approximately C$4.2 billion), it is the largest
    project financing to date for an offshore wind farm; 
--  Strong equity consortium consisting of Northland Power Inc., Siemens
    Financial Services, Van Oord Dredging and Marine Contractors BV and N.V.
    HVC; 
--  Two-contract structure for turbine supply and project construction
    minimizes risk; 
--  Strong revenues through Netherlands sustainable energy subsidy (SDE)
    program; 
--  Gemini will play an important role in achieving European Union's
    Renewable Energy Directive calling on all Member States to reach a 20%
    share of energy from renewable sources by 2020; 
--  To date, Gemini is the largest offshore wind farm in the North Sea,
    which has one of the most reliable wind resources in the world. 



Northland today announced that Gemini, a 600MW offshore wind project located
approximately 85 kilometres off the coast of the Netherlands in the North Sea
has reached financial close, having placed all of the EUR2.8 billion of equity
and debt required for the project. More than 22 parties, including 12 commercial
creditors, 4 public financial institutions, together with 1 pension fund and
Northland as subordinated debt lenders, and the 4 members of the equity
consortium were involved in the signing of the financing contracts. Gemini is
the largest-ever project financed offshore wind farm.


"Today's announcement is a major achievement for Northland," noted John Brace,
CEO of Northland Power. "We are very pleased with the extraordinary effort put
forth by the project's financiers, as financial close was achieved in record
time for a project of this nature. As the largest project financing in the
offshore wind sector, today's results validate the high quality of the project
and illustrate Northland's evolution from a leading Canadian power producer to
an international company taking on world-class projects. We continue to
demonstrate our track record of utilizing innovative financing structures and
delivering superior results and significant growth, and believe Gemini is just
the beginning for Northland in the burgeoning offshore wind sector."


Gemini is owned by a consortium consisting of Northland Power (60%), Siemens
Financial Services (SFS - 20%), Van Oord Dredging and Marine Contractors BV (Van
Oord - 10%) and N.V. HVC (HVC - 10%). SFS is an affiliate of Siemens, one of the
world's leading providers of eco-friendly technology. Van Oord is a leading
Netherlands-based international marine contractor with an excellent track record
in offshore wind farm construction and a leading position as EPC contractor in
offshore wind projects. HVC is a leading utility company of and for 48 Dutch
municipalities and six water regulatory authorities. Their mission is to help
the participating authorities achieve their goals in the field of energy,
climate, waste and raw materials.


Northland Power, SFS, Van Oord and HVC have provided combined equity of more
than EUR400 million. In addition, Northland Power and the Danish pension fund
PKA have provided subordinated loans totalling EUR200 million.


Northland's total investment, including its equity investment, share purchase
and subordinated loan to Gemini, is approximately C$565 million. Northland has
provided additional contingent equity support to the project in the form of
letters of credit totalling EUR94.8 million, and expects a previously issued
letter of credit totalling EUR24 million to be returned shortly after financial
close.


Northland has entered into foreign exchange contracts with several members of
its corporate banking syndicate to effectively fix the foreign exchange
conversion rate on substantially all projected Euro-denominated cash inflows
from Project Gemini throughout the 15 year SDE term at a weighted average
conversion rate of approximately 1.67 Canadian dollars per Euro.


Northland has taken a lead role in completing the remaining outstanding
development activities since its participation announcement in August 2013, and
intends to continue its active leadership role in the consortium during
construction and operations. Concurrent with financial closing, Gemini's major
construction and supply contracts and Northland's purchase of its shares in the
project all became effective. The project has now commenced construction, and is
expected to reach full commercial operations in 2017.


Under a two-contract project structure Siemens will supply and erect the
turbines, and Van Oord will construct the rest of the wind farm; this approach
minimizes risk by reducing the number of interfaces in the construction of the
project to just one. In addition, Siemens will maintain the turbines over the
first 15 years of the project's life. The financial sector's confidence in
Gemini can be attributed to the robust structure of the project and to the
electricity revenue support through the Netherlands' SDE subsidy program, which
combined, provide a stable and solid investment opportunity. 


Approximately 70% of the project's required financing has been provided via EUR2
billion of "non-recourse" senior secured construction and term debt financing
from twelve international commercial creditors, three export credit agencies and
the European Investment Bank. This type of financing requires a strong project
contract structure and entails a comprehensive due diligence process. Reflecting
the strength of the project, the Gemini senior financing was oversubscribed and
attracted a number of institutions that have not previously lent to the offshore
wind sector. The interest rate for the project has been hedged over the full
loan amortization period with an effective interest rate of approximately 4.75%.


The international commercial creditors are based in North America, Asia and
Europe and consist of ABN AMRO Bank, BNP Paribas, Bank of Tokyo-Mitsubishi UFJ,
Deutsche Bank, Export Development Canada, Natixis, Sumitomo Mitsui Banking
Corporation, Bank of Montreal, CIBC, Bank Nederlandse Gemeenten, Banco Santander
and CaixaBank. The three export credit insurers are EKF from Denmark, Euler
Hermes from Germany, and Delcredere/Ducroire from Belgium.


Once constructed, Gemini will be the largest wind farm in the North Sea,
providing enough clean energy to supply the needs of 1.5 million people
annually. Combining favourable sea bed conditions with one of the strongest and
most reliable wind resources in the world, the North Sea could produce enough
energy to power Europe four times over. Gemini will play an important role in
helping the Government of the Netherlands achieve renewable energy targets
mandated by the European Union's Renewable Energy Directive, which calls for all
Member States to reach a 20% share of energy from renewable sources by 2020. 


As a result of the Closing, the maturity date of Northland's aggregate C$78.8
million principal amount of 5.00% Extendible Convertible Unsecured Subordinated
Debentures, Series B, issued in March, 2014, is automatically extended to June
30, 2019.


Note: Amounts related to Project Gemini are generally stated in the currency of
origin. Where noted as "approximately", certain euro amounts are stated in
Canadian Dollars at the approximate exchange rate in effect as of the date
hereof.


ABOUT NORTHLAND

Northland is an independent power producer founded in 1987, and publicly traded
since 1997. Northland develops, builds, owns and operates facilities that
produce 'clean' (natural gas) and 'green' (wind, solar, and hydro) energy,
providing sustainable long-term value to shareholders, stakeholders, and host
communities.


The company owns or has a net economic interest in 1,379 MW of operating
generating capacity, with an additional 50 MW of generating capacity currently
in construction, and another 750 MW (439 MW net to Northland) of wind and solar
projects with awarded power contracts. The above includes Northland's majority
equity stake in Gemini, a 600 MW (360 MW net to Northland) offshore wind project
in the North Sea. Northland's cash flows are diversified over five
geographically separate regions and regulatory jurisdictions in Canada, Europe
and the United States.


Northland's common shares, Series 1 and Series 3 preferred shares and
convertible debentures trade on the Toronto Stock Exchange under the symbols
NPI, NPI.PR.A, NPI.PR.C, NPI.DB.A and NPI.DB.B, respectively.


FORWARD-LOOKING STATEMENTS

This release contains certain forward-looking statements which are provided for
the purpose of presenting information about management's current expectations
and plans. Readers are cautioned that such statements may not be appropriate for
other purposes. Forward-looking statements include statements that are
predictive in nature, depend upon or refer to future events or conditions, or
include words such as "expects," "anticipates," "plans," "believes,"
"estimates," "intends," "targets," "projects," "forecasts" or negative versions
thereof and other similar expressions, or future or conditional verbs such as
"may," "will," "should," "would" and "could." These statements may include,
without limitation, statements regarding plans for raising capital. These
statements are based upon certain material factors or assumptions that were
applied in developing the forward-looking statements, including management's
current plans, its perception of historical trends, current conditions and
expected future developments, as well as other factors that are believed to be
appropriate in the circumstances. Although these forward-looking statements are
based upon management's current reasonable expectations and assumptions, they
are subject to numerous risks and uncertainties. Some of the factors that could
cause results or events to differ from current expectations include, but are not
limited to, operational risks, foreign exchange rates, regulatory risks, and the
variability of revenues from generating facilities powered by intermittent
renewable resources and the other factors described in the "Risks and
Uncertainties" section of Northland's 2013 Annual Report and Annual Information
Form, both of which can be found at www.sedar.com under Northland's profile and
on Northland's website www.northlandpower.ca. Northland's actual results could
differ materially from those expressed in, or implied by, these forward-looking
statements and, accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or occur.


The forward-looking statements contained in this release are based on
assumptions that were considered reasonable on May 14, 2014. Other than as
specifically required by law, Northland undertakes no obligation to update any
forward-looking statements to reflect events or circumstances after such date or
to reflect the occurrence of unanticipated events, whether as a result of new
information, future events or results, or otherwise.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Sarah Charuk
Director of Communications
416-886-8960
Sarah.charuk@northlandpower.ca

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