Altius Renewable Royalties Announces Resale of Projects with Existing Royalties Associated with Tri Global Energy Royalty Financing Partnership
Altius Renewable RoyaltiesCorp. (TSX: ARR) (OTCQX: ATRWF) (“ARR” or the “Company”), is pleased to report that the previously sold 360 MW Canyon Wind project and 180 MW Flatland Solar project (see Altius Minerals press release dated October 17, 2019), have been re-acquired by Tri Global Energy (“TGE”) and resold to an established buyer. Both projects are located in West Texas and have royalties in favour of Great Bay Renewables LLC, (“Great Bay”) which is jointly controlled by ARR and certain funds managed by affiliates of Apollo Global Management, Inc.
As part of the acquisition structuring, Great Bay agreed to adjust the royalty rates on Canyon Wind to a phased royalty of 2.0% on the first 150 MWs, 2.5% on the next 50 MWs and a 3.0% royalty on anything above 200 MWs since the project is now expected to be constructed in phases. The royalty for Flatland Solar was adjusted from 1.5% to an escalating fixed payment of equivalent value.
The royalty rate adjustments will be reflected accordingly during the post-operational valuations to be completed pursuant to Great Bay’s agreements with TGE and will not impact the overall return hurdle requirements contemplated therein.
ARR is a recently formed renewable energy company whosebusiness is to provide long-term, royalty level investment capital to renewable power developers, operators, and originators. ARR has 16 renewable energy royalties representing 3,510 MW of renewable power, diversified by wind, solar,stage of development or operations and regional power pool in the U.S. The Corporation combines industry expertise with innovative, partner-focused solutions tofurther the growth of the renewable energy sector as it fulfills its critical role in enabling the global energy transition.
For further information, please contact:
Flora Wood, Corporate Secretary
Ben Lewis, CFO