checkAd

Altius Renewable Royalties Announces New Operating Royalty Investment and CDN$35 million Bought Deal Financing

                                                          NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

ST. JOHN'S, Newfoundland and Labrador, Dec. 01, 2022 (GLOBE NEWSWIRE) -- Altius Renewable Royalties Corp. (TSX: ARR) (OTCQX: ATRWF) (“ARR”, the “Corporation”, or the “Company”) reports that Great Bay Renewables II (“Great Bay”), its subsidiary that is jointly controlled with funds managed by affiliates of Apollo Global Management (“Apollo”), has entered into a US$46 million royalty investment agreement with Longroad Energy (“Longroad”) to support Longroad’s acquisition of the 70 MWac Titan Solar project in Imperial County, CA (“Titan”).

Titan represents Great Bay’s first royalty investment in California. Longroad is a top-tier developer, owner, and operator of renewable energy projects that owns 1.5 GW of wind and solar projects across the US and operates and manages a total of 3.5 GW on behalf of itself and third parties. Great Bay also holds a royalty on Longroad’s operating Prospero 2 solar project in Texas.

As part of the Titan acquisition, Longroad is buying down an existing hedge associated with the project such that starting in 2026 approximately 70% of the expected revenues will be market-based with the remainder relating to contracted capacity payments and renewable energy credits.

The royalty investment has been structured using royalty rates that vary over time and achieve Great Bay’s investment hurdles while optimizing Longroad’s project level cash flow profile. Great Bay expects its royalty on Titan to contribute approximately US$3 - $3.5 million to its revenues in 2023, and to average US$4.5 - $5 million annually over its first 10 years.

ARR will fund its 50% share of the royalty investment with an equivalent amount funded by Apollo, its Great Bay level joint venture partner.

Frank Getman, CEO of Great Bay, commented, “Longroad is one of the best in the business. We are pleased to close our second royalty investment with Longroad, particularly as this investment proves a new use case for the adoption of our royalty financing, namely to support third-party project acquisitions. Our flexible, partner-like capital is increasingly proving itself to be competitive with other available sources of capital in the market today, with now approximately US$300 million in royalty investment agreements signed since inception.”

Seite 1 von 4


Wertpapier



0 Kommentare
Nachrichtenquelle: globenewswire
 |  331   |   |   

Schreibe Deinen Kommentar

Disclaimer

Altius Renewable Royalties Announces New Operating Royalty Investment and CDN$35 million Bought Deal Financing                                                           NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ST. JOHN'S, Newfoundland and Labrador, Dec. 01, 2022 (GLOBE NEWSWIRE) - Altius …

Nachrichten des Autors

3352 Leser
312 Leser
288 Leser
272 Leser
248 Leser
248 Leser
244 Leser
244 Leser
240 Leser
228 Leser
3352 Leser
640 Leser
540 Leser
508 Leser
504 Leser
468 Leser
464 Leser
456 Leser
452 Leser
436 Leser
3352 Leser
1684 Leser
1172 Leser
1124 Leser
956 Leser
840 Leser
828 Leser
820 Leser
804 Leser
800 Leser
10593 Leser
4428 Leser
3488 Leser
3352 Leser
2744 Leser
2294 Leser
2246 Leser
2077 Leser
2052 Leser
2037 Leser