DGAP-News

Altius Renewable Royalties Announces US$52.5 Million Royalty Investment in a Northleaf Wind and Solar Portfolio; New Developer Royalty Added

DGAP-News: / Key word(s): Investment/Sustainability Altius Renewable Royalties Announces US$52.5 Million Royalty Investment in a Northleaf Wind and Solar Portfolio; New Developer Royalty Added 05.10.2021 / 20:30 The issuer is solely responsible for the content of this announcement. St. John's, Newfoundland - September 30, 2021 - Altius Renewable Royalties Corp. (TSX: ARR, WKN: A2QQFT, OTCQX: ATRWF) ("ARR" or the "Company") reports that its joint venture subsidiary Great Bay Renewables ("GBR") has closed a US$52.5 million royalty investment with Northleaf Capital Partners ("Northleaf") related to three operating-stage wind and solar renewable energy projects located in Texas. GBR is a joint venture company of ARR and funds managed by affiliates of Apollo Global Management, Inc. (NYSE: APO) ("Apollo Funds").

Cotton Plains Portfolio Royalty Acquisition

The newly acquired revenue-based royalty portfolio includes: (1) the 151 MW Old Settler wind project, (2) the 50 MW Cotton Plains wind project, and (3) the 15 MW Phantom Solar project (collectively, the "Projects"). The output from Cotton Plains and Phantom Solar is sold at a fixed price under long-term contracts with the US Department of Defense through January 2045, while the output from Old Settler will be sold into the ERCOT market. The three projects have been in commercial operation since 2017.

The royalty investment has been structured using royalty rates that vary over time and provide GBR with US$ 4-7 million per year over the first 10 years of the investment. The structure also allows ARR to achieve its investment hurdle targets while optimizing Northleaf's project level cash flow profile. The royalty funding will be used to repay existing debt financing and provide additional working capital.

Jared Waldron, Managing Director at Northleaf, said, "We are pleased to be partnering with GBR to implement an innovative financing solution that will create value for our investors. As long-term assets producing stable cash flows from the generation of clean energy, the Projects will benefit from the long-term financing afforded by this new royalty structure."