Polaris Renewable Energy Announces Acquisition Transaction in Puerto Rico
Polaris Renewable Energy has announced the acquisition of Punta Lima Wind Farm in Puerto Rico through an Equity Capital Contribution Agreement. The 26.0 MW operating onshore wind farm has a 20-year power purchase agreement with PREPA extending until March 2044. The transaction, structured as a tax-equity deal, involves a $20 million equity contribution from Polaris, who will become the manager and operator with controlling interest, while Santander retains a tax equity position. The deal is expected to close in approximately 90 days, pending regulatory approvals.
Polaris Renewable Energy ha annunciato l'acquisizione del Punta Lima Wind Farm a Porto Rico attraverso un Accordo di Contributo di Capitale Azionario. L'impianto eolico da 26,0 MW, situato onshore, ha un contratto di acquisto di energia della durata di 20 anni con la PREPA che si estende fino a marzo 2044. La transazione, strutturata come un accordo di tax-equity, prevede un contributo azionario di 20 milioni di dollari da parte di Polaris, che diventerà il gestore e operatore con interesse di controllo, mentre Santander manterrà una posizione di tax equity. Si prevede che l'accordo si chiuda entro circa 90 giorni, soggetto ad approvazioni regolatorie.
Polaris Renewable Energy ha anunciado la adquisición de Punta Lima Wind Farm en Puerto Rico a través de un Acuerdo de Contribución de Capital Accionario. El parque eólico en tierra de 26,0 MW tiene un contrato de compra de energía de 20 años con PREPA que se extiende hasta marzo de 2044. La transacción, estructurada como un acuerdo de tax-equity, involucra una contribución de capital de 20 millones de dólares por parte de Polaris, quien se convertirá en el gestor y operador con interés de control, mientras que Santander retiene una posición de tax equity. Se espera que el acuerdo se cierre en aproximadamente 90 días, sujeto a aprobaciones regulatorias.
폴라리스 재생 에너지는 자본 출자 계약을 통해 푸에르토리코의 푸enta 리마 풍력 발전소 인수를 발표했습니다. 26.0 MW의 육상의 풍력 발전소는 2044년 3월까지 유효한 20년 계약을 체결하고 있습니다. 세금 자본 거래로 구조화된 이 거래에는 폴라리스의 2천만 달러의 자본 출자가 포함되어 있으며, 폴라리스는 관리자가 되고 운영자로서의 지배적 지위를 갖게 되며, 산탄데르는 세금 자본 위치를 유지합니다. 이 거래는 규제 승인 여부에 따라 약 90일 이내에 완료될 것으로 예상됩니다.
Polaris Renewable Energy a annoncé l'acquisition de Punta Lima Wind Farm à Porto Rico par le biais d'un Accord de Contribution en Capital. Ce parc éolien terrestre de 26,0 MW dispose d'un contrat d'achat d'énergie de 20 ans avec la PREPA, se prolongeant jusqu'en mars 2044. La transaction, structurée comme un accord de capital fiscal, implique une contribution en capital de 20 millions de dollars de la part de Polaris, qui deviendra le gestionnaire et l'opérateur avec un intérêt de contrôle, tandis que Santander conserve une position de capital fiscal. La conclusion de l'accord est prévue dans environ 90 jours, sous réserve d'approbations réglementaires.
Polaris Renewable Energy hat die Übernahme des Punta Lima Wind Farm in Puerto Rico durch einen Eigenkapitalbeitragsvertrag angekündigt. Der 26,0 MW große onshore Windpark hat einen 20-jährigen Stromabnahmevertrag mit der PREPA, der bis März 2044 läuft. Die Transaktion, die als Steuerkapitalgeschäft strukturiert ist, umfasst einen 20-Millionen-Dollar Eigenkapitalbeitrag von Polaris, die zum Manager und Betreiber mit controlling Interesse wird, während Santander eine Steuerkapitalposition behält. Es wird erwartet, dass das Geschäft in etwa 90 Tagen abgeschlossen wird, vorbehaltlich der Genehmigung durch die Aufsichtsbehörden.
- Acquisition adds 26.0 MW of operational wind power capacity
- Secured 20-year PPA with PREPA until March 2044
- Geographic diversification into Puerto Rico market
- Potential for energy storage and grid services expansion
- Significant capital outlay of $20 million from cash reserves
- Transaction subject to regulatory approval risks
- 90-day closing period creates execution uncertainty
TORONTO, ON / ACCESSWIRE / October 29, 2024 / Polaris Renewable Energy Inc. (TSX:PIF) ("Polaris" or the "Company"), is pleased to announce that it has entered into an Equity Capital Contribution Agreement ("ECCA") with respect to Punta Lima Wind Farm LLC (a wholly owned subsidiary of Santander Bank N.A. -"Santander"-).
The project is an operating onshore wind farm called Punta Lima Wind Farm ("PLWF" or the "Project") with a nameplate capacity of 26.0 MW's located in the Municipality of Naguabo, Puerto Rico. The Project was re-constructed and recommissioned by Santander and has a 20-year power purchase agreement ("PPA") in place with Puerto Rico Electric Power Authority (PREPA) terminating in March 2044.
The transaction is being completed using a tax-equity structure which will result in Polaris becoming the manager and operator of the Project with a controlling equity interest and Santander retaining a tax equity interest in the Project. the transaction is subject to customary closing conditions, which principally consist of approval of the acquisition by local regulatory bodies as well as the execution of a corresponding LLC Agreement. It is expected that these conditions will take approximately 90 days to finalize. The total equity contribution of
"This strategic acquisition further deploys Polaris capital into another jurisdiction while adding wind into our generation mix", said Marc Murnaghan, President and CEO of Polaris. "We believe that this transaction provides attractive near-term returns to our shareholders as well as enhancing our growth opportunities significantly. This includes the use of energy storage to provide competitively priced energy and grid stabilization services as well as exploring further strategic opportunities on the island given its stated future energy requirements."
"Santander is proud to have rebuilt the Punta Lima wind farm in Puerto Rico and is very pleased to be selling its interest to a specialist partner in Polaris," said Nuno Andrade, head of Global Debt Financing US, Santander Corporate & Investment Banking. "It was the right thing to do to support the island's clean energy efforts and we are very happy with this outcome."
About Polaris Renewable Energy Inc.
Polaris Renewable Energy Inc. is a Canadian publicly traded company engaged in the development, construction, acquisition, and operation of renewable energy projects in Latin America.
The Company's operations are in 5 Latin American countries and include a geothermal plant (~82 MW), 3 run-of-river hydroelectric plants (~39 MW), and 3 solar (photovoltaic) projects in operation (~35 MW).
About Santander
Santander Bank, N.A. is one of the country's leading retail and commercial banks, with
Santander Corporate & Investment Banking (Santander CIB) is Santander's global division that supports corporate and institutional clients, offering tailored services and value-added wholesale products suited to their complexity and sophistication, as well as to responsible banking standards that contribute to the progress of society.Santander US Capital Markets LLC (SanCap) is the institutional broker-dealer of Santander in the United States operating under Santander Corporate & Investment Banking, a Santander global division that supports corporate and institutional clients."
About Punta Lima Wind Farm LLC.
Punta Lima Wind Farm, LLC operates a wind power plant called Punta Lima Wind Farm, The Punta Lima project started production in October 2012 until it was rendered inoperative by hurricane Maria in 2017. Installation of 13 new Vestas V100-2.0 MW wind turbines started in 2022 with COD achieved in March 2024.
For more information, contact:
Investor Relations
Polaris Renewable Energy Inc.
Phone: +1 647-245-7199
mail: info@PolarisREI.com
Cautionary Statements
This press release contains certain "forward-looking information" which may include, but is not limited to, statements with respect to future events or future performance, management's expectations regarding the timing and amount of purchases of Shares, if any, made under the NCIB, as well as the benefits of such purchases, including providing flexibility to the Company in managing its capital position.Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others, the inability of the Company to pay for any Shares it wishes to purchase, the price of the Shares purchased or the affect that any such purchases have on the Company's capital position, all of which may be affected by such factors as general business, economic, competitive, political and social uncertainties; the actual results of current geothermal, solar and hydro energy production, development and/or exploration activities and the accuracy of probability simulations prepared to predict prospective geothermal resources; changes in project parameters as plans continue to be refined; possible variations of production rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the geothermal and hydro power industries; political instability or insurrection or war; labor force availability and turnover; delays in obtaining governmental approvals or in the completion of development or construction activities, or in the commencement of operations; the ability of the Company to continue as a going concern and general economic conditions, as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form. These factors should be considered carefully, and readers of this press release should not place undue reliance on forward-looking information.
Although the forward-looking information contained in this press release is based upon what management believes to be reasonable assumptions, there can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The information in this press release, including such forward-looking information, is made as of the date of this press release and, other than as required by applicable securities laws, Polaris assumes no obligation to update or revise such information to reflect new events or circumstances.
SOURCE: Polaris Renewable Energy Inc.
View the original press release on accesswire.com
FAQ
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