RE Royalties Enters into a Letter of Intent to provide a Secured Loan to Revolve for US $8,000,000 to Finance Acquisition of a 9.6 MW Operating Wind Project in the United States
RE Royalties (RROYF) has entered into a letter of intent to provide a US$8 million secured loan to Revolve Renewable Power for acquiring a 95% interest in a 9.6 MW operating wind project in the United States. The project features six 1.6 MW wind turbines generating revenue through a Power Purchase Agreement with a regional utility.
The loan will have a 24-month term with 12% interest on drawn funds, payable quarterly. RE Royalties will receive a 5% royalty on gross project revenues for its remaining life. The project includes a lease agreement for 127 acres of land extending until 2046.
This investment represents RE Royalties' largest single investment to date and will add significant accretive cash flow to their portfolio. For Revolve, this acquisition will increase their total operational capacity to 22 MW, building on their existing 12.33 MW portfolio in Canada and Mexico.
RE Royalties (RROYF) ha firmato una lettera di intenti per fornire un prestito garantito di 8 milioni di dollari USA a Revolve Renewable Power per acquisire un interesse del 95% in un progetto eolico operativo da 9,6 MW negli Stati Uniti. Il progetto comprende sei turbine eoliche da 1,6 MW che generano entrate attraverso un Contratto di Acquisto di Energia con un'utility regionale.
Il prestito avrà un termine di 24 mesi con un interesse del 12% sui fondi utilizzati, pagabile trimestralmente. RE Royalties riceverà una royalty del 5% sui ricavi lordi del progetto per tutta la sua vita residua. Il progetto include un contratto di locazione per 127 acri di terreno valido fino al 2046.
Questo investimento rappresenta il più grande investimento singolo di RE Royalties fino ad oggi e aggiungerà un significativo flusso di cassa accrescitivo al loro portafoglio. Per Revolve, questa acquisizione aumenterà la loro capacità operativa totale a 22 MW, ampliando il loro portafoglio esistente di 12,33 MW in Canada e Messico.
RE Royalties (RROYF) ha firmado una carta de intención para proporcionar un préstamo garantizado de 8 millones de dólares estadounidenses a Revolve Renewable Power para adquirir un interés del 95% en un proyecto eólico operativo de 9,6 MW en los Estados Unidos. El proyecto cuenta con seis turbinas eólicas de 1,6 MW que generan ingresos a través de un Acuerdo de Compra de Energía con una empresa de servicios públicos regional.
El préstamo tendrá un plazo de 24 meses con un interés del 12% sobre los fondos utilizados, pagadero trimestralmente. RE Royalties recibirá una regalía del 5% sobre los ingresos brutos del proyecto durante su vida restante. El proyecto incluye un contrato de arrendamiento por 127 acres de tierra que se extiende hasta 2046.
Esta inversión representa la mayor inversión única de RE Royalties hasta la fecha y añadirá un flujo de efectivo significativo a su cartera. Para Revolve, esta adquisición aumentará su capacidad operativa total a 22 MW, ampliando su cartera existente de 12,33 MW en Canadá y México.
RE Royalties (RROYF)는 Revolve Renewable Power에 800만 달러의 담보 대출을 제공하기 위한 의향서를 체결했습니다. 이 자금은 미국에서 9.6 MW의 운영 중인 풍력 프로젝트에 대한 95%의 지분을 인수하는 데 사용됩니다. 이 프로젝트는 1.6 MW의 풍력 터빈 6개로 구성되어 있으며, 지역 유틸리티와의 전력 구매 계약을 통해 수익을 창출합니다.
대출은 12%의 이자율로 24개월의 만기를 가지며, 인출된 자금에 대해 분기별로 지급됩니다. RE Royalties는 프로젝트의 잔여 수명 동안 총 프로젝트 수익의 5% 로열티를 받게 됩니다. 이 프로젝트는 2046년까지 유효한 127에이커의 토지 임대 계약을 포함합니다.
이번 투자는 RE Royalties의 최대 단일 투자로, 그들의 포트폴리오에 상당한 현금 흐름을 추가할 것입니다. Revolve에게는 이 인수가 총 운영 용량을 22 MW로 늘리고, 캐나다와 멕시코에 있는 기존 12.33 MW 포트폴리오를 확장하는 데 기여할 것입니다.
RE Royalties (RROYF) a signé une lettre d'intention pour fournir un prêt garanti de 8 millions de dollars américains à Revolve Renewable Power afin d'acquérir un intérêt de 95% dans un projet éolien opérationnel de 9,6 MW aux États-Unis. Le projet comprend six éoliennes de 1,6 MW générant des revenus grâce à un Contrat d'Achat d'Énergie avec une entreprise de services publics régionale.
Le prêt aura une durée de 24 mois avec un intérêt de 12% sur les fonds tirés, payable trimestriellement. RE Royalties recevra une redevance de 5% sur les revenus bruts du projet pour sa durée restante. Le projet comprend un contrat de location pour 127 acres de terrain valable jusqu'en 2046.
Cet investissement représente le plus grand investissement unique de RE Royalties à ce jour et ajoutera un flux de trésorerie significatif à leur portefeuille. Pour Revolve, cette acquisition augmentera leur capacité opérationnelle totale à 22 MW, s'appuyant sur leur portefeuille existant de 12,33 MW au Canada et au Mexique.
RE Royalties (RROYF) hat eine Absichtserklärung unterzeichnet, um Revolve Renewable Power einen gesicherten Kredit über 8 Millionen US-Dollar zur Verfügung zu stellen, um 95% der Anteile an einem 9,6 MW großen Betriebswindprojekt in den Vereinigten Staaten zu erwerben. Das Projekt umfasst sechs 1,6 MW Windturbinen, die Einnahmen durch einen Stromabnahmevertrag mit einem regionalen Versorgungsunternehmen generieren.
Der Kredit hat eine Laufzeit von 24 Monaten mit 12% Zinsen auf die in Anspruch genommenen Mittel, die vierteljährlich zahlbar sind. RE Royalties erhält eine 5%ige Lizenzgebühr auf die Bruttoeinnahmen des Projekts für die verbleibende Laufzeit. Das Projekt umfasst einen Pachtvertrag für 127 Acres Land, der bis 2046 läuft.
Diese Investition stellt die größte Einzelinvestition von RE Royalties bis heute dar und wird einen signifikanten Cashflow zu ihrem Portfolio hinzufügen. Für Revolve wird diese Akquisition die gesamte Betriebsfähigkeit auf 22 MW erhöhen und das bestehende Portfolio von 12,33 MW in Kanada und Mexiko erweitern.
- Secured 5% royalty on gross revenues for the project's lifetime
- 12% interest rate on loan provides strong return on investment
- Project has long-term revenue security through Power Purchase Agreement
- Asset has long operational timeline with lease extending to 2046
- Largest single investment to date for RE Royalties
- Loan closing subject to multiple conditions and acquisition completion
- Significant single-project exposure with US$8M investment
- 24-month loan term indicates relatively short-term financing structure
All amounts in Canadian dollars unless otherwise stated.
VANCOUVER, BC / ACCESS Newswire / April 1, 2025 / RE Royalties Ltd. (TSXV:RE)(OTCQX:RROYF) ("RE Royalties" or the "Company"), a global leader in renewable energy royalty-based financing, has entered into a letter of intent for a secured loan (the "Loan") with Revolve Renewable Power Corp. (TSXV:REVV) ("Revolve"), a North American owner, operator and developer of renewable energy projects, of up to US
The Project consists of six 1.6 MW wind turbines generating revenue through a Power Purchase Agreement with a regional utility. Closing of the Loan is expected to occur in Q2 of this calendar year and is subject to several customary closing conditions including the completion of the Proposed Acquisition. The Loan will have a term of 24 months and bear interest at
The Project is Revolve's first acquisition of an operating renewable energy asset in the United States and builds on their current operating portfolio of 12.33 MW in Canada and Mexico.
It includes a lease agreement for 127 acres of land with a project life until 2046. The Proposed Acquisition, once completed, will add 9.6 MW of net operational capacity to Revolve's portfolio, bringing the total under operation to 22 MW.
Peter Leighton, COO of RE Royalties, stated: "We are excited to be working with Revolve again as they continue to deliver on their growth strategy by adding more operating assets to their portfolio. This investment will be RE Royalties single biggest investment to date and will add significant accretive cash flow to our investment portfolio."
"This Proposed Acquisition is another significant milestone for Revolve as we continue to execute on our growth plan across North America," said CEO Myke Clark. "Once completed, this acquisition will add another strong recurring revenue stream to our growing portfolio of assets. We continue to see several exciting opportunities to supplement our strategy by acquiring operating assets in the US and Canada. This is the third significant acquisition of operating assets in our recent history, and we are committed to accelerating that process as we scale our business through additional acquisitions and organic growth."
On Behalf of the Board of Directors,
Bernard Tan
CEO
About Revolve Renewable Power Corp.
Revolve Renewable Power Corp. was formed in 2012 to capitalize on the growing global demand for renewable power. Revolve develops utility-scale wind, solar, hydro and battery storage projects in the US, Canada and Mexico. Revolve also installs and operates sub 20MW "behind the meter" distributed generation (or "DG") assets. To-date, Revolve has developed and sold over 1,550MW of projects.
About RE Royalties Ltd.
RE Royalties Ltd. acquires revenue-based royalties over renewable energy facilities and technologies by providing non-dilutive financing solutions to privately held and publicly traded companies in the renewable energy sector. RE Royalties is the first to apply this proven business model to the renewable energy sector. The Company currently owns over 100 royalties on solar, wind, battery storage, energy efficiency and renewable natural gas projects in Canada, United States, Mexico, and Chile. The Company's business objectives are to provide shareholders with a strong growing yield, robust capital protection, high rate of growth through re-investment and a sustainable investment focus.
For further information, please contact:
Investor and Media Contacts:
RE Royalties Ltd.
Talia Beckett, VP of Communications and Sustainability
T: (778) 374‐2000
E: investor@reroyalties.com
www.reroyalties.com
Revolve Renewable Power Corp.
Myke Clark, CEO
T: (778) 372-8499
E: IR@revolve-renewablepower.com
www.revolve-renewablepower.com
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This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction, nor shall there be any offer or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been approved or disapproved by any regulatory authority nor has any such authority passed upon the accuracy or adequacy of the short form base shelf prospectus or the prospectus supplement. The offer and sale of the securities has not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States or to United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Forward-Looking Statements
This news release includes forward-looking information and forward-looking statements (collectively, "forward-looking information") with respect to the Company and within the meaning of Canadian securities laws. Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate, and similar expressions, or are those, which, by their nature, refer to future events. This information represents predictions and actual events or results may differ materially. Forward-looking information may relate to the Company's future outlook and anticipated events or results and may include statements regarding the Company's financial results, future financial position, expected growth of cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, industry trends and growth opportunities including financing. The reader is referred to the Company's most recent filings on SEDAR as well as other information filed with the OTC Markets for a more complete discussion of all applicable risk factors and their potential effects, copies of which may be accessed through the Company's profile page at www.sedar.com.
SOURCE: RE Royalties Ltd.
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FAQ
What are the key terms of RE Royalties' (RROYF) US$8M loan to Revolve?
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