Altius Renewable Royalties Announces Closing of $247 Million Credit Facility
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All $ references in US unless otherwise stated
ST. JOHN’S,
MUFG Bank and Natixis Corporate & Investment Banking (“Natixis CIB”) are Coordinating Lead Arrangers, Bookrunners, Syndication Agents and hedge providers with respect to the facilities.
Frank Getman, CEO of Great Bay, commented, “We are pleased to secure this facility, which enables us to accelerate our growth trajectory in the renewable royalty sector while maintaining a competitive cost of capital. This agreement represents another strong endorsement of our business model, and with over
Terms
Key terms of the credit facility are as follows:
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Subject to certain conditions precedent, initial draw of
of the ITF to be used for closing costs and return of capital to the shareholders, ARR and Apollo. The joint owners intend to reinvest the debt proceeds back into GBR as future royalty investment opportunities arise.$123.5 million -
Subject to certain conditions precedent, Delayed Draw Facility of
available in tranches for future royalty acquisitions, with the amount available to Great Bay to be determined based on expected revenue parameters, with adjustment factors for merchant vs. contract weighting and renewable energy source. The Delayed Draw Facility will be available for the first 3 years of the term.$100 million -
LC to accommodate debt service reserve requirements and for development stage renewable royalty investment support.$23 million - Initial term of 5 years for the credit facilities.
- Repayments based on expected interest rates based on a 20 year amortization period. Repayable anytime without penalty. Interest payments are expected to be met by existing operating royalty cash flow.
- A pledge of equity and security in the form of first lien on existing cash generating assets or expected near term cash generating assets of Great Bay, along with a pledge of the equity in the subsidiary holdings of its developer investments (including Hodson, Hexagon, Bluestar and Tri Global Energy investments).
- The credit facility agreements contain customary representations and warranties, covenants and events of default (subject to customary grace and cure periods).
In connection with the financing, Great Bay entered into a floating-to-fixed interest rate swap to lock in approximately
Use of Proceeds
The borrowing is intended to finance or reimburse investments previously made in Eligible Green Collateral Projects, under the categories of “Renewable Energy Production” and “Green Technologies – Energy Storage Systems”, under the Green Loan Principles administered by the International Capital Market Association.
Advisory
Great Bay was advised on this transaction by the legal teams at Vinson & Elkins LLP and Pierce Atwood LLP, and the advisory team at Apterra Infrastructure Capital.
About Natixis CIB
Natixis Corporate & Investment Banking is a leading global financial institution that provides advisory, investment banking, financing, corporate banking and capital markets services to corporations, financial institutions, financial sponsors and sovereign and supranational organizations worldwide.
Natixis CIB’s teams of experts in close to 30 countries advise clients on their strategic development, helping them to grow and transform their businesses, and maximize their positive impact. Natixis CIB is committed to aligning its financing portfolio with a carbon neutrality path by 2050 while helping its clients reduce the environmental impact of their business.
As part of the Global Financial Services division of Groupe BPCE, the second largest banking group in
About MUFG and MUFG Americas
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups. Headquartered in
MUFG’s
About ARR
ARR is a renewable energy royalty company whose business is to provide long-term, royalty-level investment capital to renewable power developers, operators, and originators. ARR currently has 10 renewable energy royalties representing 2,068 MW of renewable power on operating projects, and an additional approximately 6.0 GW on projects in the construction and development phases, across several regional power pools in the
Forward-looking information
This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and ARR provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although ARR believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Readers should not place undue reliance on forward-looking information. ARR does not undertake to update any forward-looking information contained herein except in accordance with securities regulation.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231031499186/en/
Flora Wood
Email: Flora@arr.energy
Tel: 1.877.576.2209
Direct: 1.416.346.9020
Ben Lewis
Email: Ben@arr.energy
Tel: 1.877.576.2209
Source: Altius Renewable Royalties Corporation
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