Transeastern Power Trust Enters Into $10 Million Senior Secured Debt Facility
October 14, 2016
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
Toronto, Ontario — October 14, 2016 - Transeastern Power Trust ("Transeastern" or the "Trust") (TSXV: TEP.UN) is pleased to announce that it has entered into a $10 million secured debt facility (the "Debt Facility") with RE Royalties Ltd.
The Debt Facility is for a three year term, subject to a one year extension at the option of Transeastern under certain conditions. Interest on the Debt Facility is initially payable at a fixed rate of 5% per annum, compounding semi-annually. The Debt Facility also provides for annual additional variable interest payments calculated as a percentage of the revenues of certain of Transeastern's current Romanian operating subsidiaries. The variable interest payments are for a twenty year term, subject to Transeastern's ongoing early prepayment option. The Debt Facility will be secured by a first charge over the assets of each of the Trust and its subsidiaries, with the exception of certain of its Romanian operating subsidiaries. The net proceeds of the Debt Facility will be used to repay existing secured indebtedness at both the Trust and Romanian subsidiary levels and for ongoing working capital purposes.
The closing of the Debt Facility and the advancement of the Debt Facility funds are expected to close in the near term.
Mr. J. Colter Eadie, Chief Executive Officer of Transeastern, commented: 'We are very pleased to welcome RE Royalties Ltd., a leading provider of financing to the renewables sector, as a key funding partner and important part of our capital structure. With this funding we reduce our total interest expense and substantially improve our financial flexibility. We look forward to working with RE Royalties Ltd. as an important partner going forward."
For further information please contact:
|Ravi Sood||J. Colter Eadie||Michael Murphy|
|+1 (647) 987-7663||+40 736 372 724||+1 (416) 625-5064|
|[email protected]||[email protected]||[email protected]|
About RE Royalties Ltd.
RE Royalties Ltd. is a growing royalty financing company focused on building a portfolio of long-term, stable, diversified royalties from renewable energy projects. Management and the Board of RE Royalties comprise of experienced senior executives from the royalty financing and renewable energy sectors. RE Royalties' focus is on partnering with growth oriented small-to-medium public and private corporations that have a portfolio of operating and/or construction ready projects and building substantial and long term partnerships and pipelines with entrepreneurial and experienced management teams.
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
Forward-Looking Statements Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "anticipates", "plans", "proposes", "estimates", "intends", "expects", "believes", "may" and "will". There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others: risks related to foreign operations (including various political, economic and other risks and uncertainties), the interpretation and implementation of the energy law, expropriation of property rights, political instability and bureaucracy, limited operating history, lack of profitability, high inflation rates, failure to obtain bank financing, fluctuations in currency exchange rates, competition from other businesses, reliance on various factors (including local labour, importation of machinery and other key items and business relationships), risks related to seasonality (including adverse weather conditions, shifting weather patterns, and global warming), a shift in energy trends and demands, a shift in energy generation in the European Union, vulnerability to fluctuations in the world market, the lack of availability of qualified management personnel and stock market volatility. Details of the risk factors relating to Transeastern and its business are discussed under the heading "Risks and Uncertainties" in Transeastern's annual management discussion and analysis for the year ended
December 31, 2015, a copy of which is available on Transeastern's SEDAR profile at www.sedar.com. Most of these factors are outside the control of the Trust. Investors are cautioned not to put undue reliance on forward-looking information. These statements speak only as of the date of this press release. Except as otherwise required by applicable securities statutes or regulation, Transeastem expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise. Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.