Trust eyes 17MW in Romania
Transeastern Power has letter of intent to acquire operating wind farm
Transeastern Power Trust has a letter of intent to acquire from RG Renovatio Group a 17MW wind farm operating in Romania.
The project has been in operation since 2012 and has an off-take agreement in place.
The purchase price is C$30.6m less the amount of debt financing on the project at the closing date of the deal – which is expected to be 31 May.
The net purchase price shall be payable as to 50% by way of an interest free vendor-take-back loan.
The remaining 50% is payable by the issuance to the vendor of a combination of units of the Trust at a deemed issuance price of C$1.00 per unit and 7.5% convertible unsecured debentures of the Trust governed by the debenture indenture of the Trust dated 28 May 2014.
The acquisition is subject to the satisfactory completion by the Trust of technical and legal due diligence, the execution of a binding acquisition agreement and the satisfaction of applicable conditions precedent.
Transeastern chief executive officer J Colter Eadie said: “The acquisition of the wind project is transformational for the Trust and is a major step forward in our diversification and expansion across generation types and capacity.
“This acquisition will more than double the annual power generation of the Trust.”