Transeastern Power Trust Announces Refinancing of Indebtedness

TORONTO, ONTARIO--(Marketwired - July 28, 2017) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Transeastern Power Trust ("Transeastern" or the "Trust") (TSX VENTURE:TEP.UN)(TSX VENTURE:TEP.DB) is pleased to announce that it has refinanced some of its existing indebtedness. All references to $ in this press release are to Canadian dollars.

Pursuant to debt settlement agreements with certain existing creditors, the Trust has issued an aggregate of $11,343,000 of 7.5% convertible unsecured subordinated debentures (the "Additional Initial Debentures") due May 28, 2019 to settle various indebtedness in the aggregate amount of approximately $9.1 million. The Additional Initial Debentures have the same terms as the initial convertible debentures issued pursuant to the Trust's convertible debenture indenture dated as of May 28, 2014, as amended (the "Debenture Indenture") and are convertible into units in the capital of the Trust ("Trust Units") at a conversion price of $1.25 per Trust Unit. The Additional Initial Debentures and the Units issuable upon the conversion thereof are subject to a statutory four month and a day hold period from the date of issuance in accordance with applicable securities legislation, and to the approval of the TSX Venture Exchange.

Mr. J. Colter Eadie, Chief Executive Officer of Transeastern, commented: "This refinancing has allowed the Trust to replace a significant amount of short term secured operating level debt with longer term unsecured indebtedness at the Trust level thus providing the Trust with increased financial flexibility and allowing it to better service its obligations. It is also a key step in closing the recently announced proposed acquisition of the Dorobantu 45mw wind project."

The issuance of certain of the Additional Initial Debentures constitutes a related party transaction under Multilateral Instrument 61-101 - "Protection of Minority Security Holders in Special Transactions" ("MI 61-101"). The Trust relied on valuation and minority approval exemptions set forth in MI 61-101.

About Transeastern

The Trust, through its direct and indirect subsidiaries in Canada, the Netherlands and Romania, has been formed to acquire interests in renewable energy assets in Romania, other countries in Europe and abroad that can provide stable cash flow to the Trust and a suitable risk-adjusted return on investment. The Trust seeks to provide investors with long-term, stable distributions, while preserving the capital value of its investment portfolio through investment, principally in a range of operational assets, which generate electricity from renewable energy sources, with a particular focus on solar and hydro power. The Trust intends to qualify as a "mutual fund trust" under the Income Tax Act (Canada) (the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any "non-portfolio property" (as defined in the Tax Act). All material information about the Trust may be found under Transeastern's issuer profile at www.sedar.com.