Canadian renewable energy company Northland Power Inc. closed a $120 million preferred share offering the proceeds of which will be used to develop its first six ground-mounted solar projects.

Northland Power develops, builds, owns and operates clean power generation projects in Ontario, Quebec and Saskatchewan. The company plans to add ground-mounted solar power projects to their portfolio.

The money will fund the equity portion of their first projects and the development of additional ones. The proceeds will also repay bank indebtedness, replenish working capital, and provide for general corporate purposes.

Northland announced the share offering on May 14 for 4.8 million shares at the price of $35.00 per share on a bought deal basis. It was with a syndicate of underwriters led by CIBC, BMO Capital Markets and Scotiabank.

Northland has a thermal, solar, hydro and wind power portfolio totaling about 1,005 megawatts and 260 MW of capacity in advanced construction.