ST. JOHN’S, Newfoundland and Labrador--(BUSINESS WIRE)--Altius Renewable Royalties (TSX:ARR) (OTCQX:ATRWF) (“ARR”) reports its Great Bay Renewables (“Great Bay” or “GBR”) joint venture has entered into a $10.1 million interconnection support facility to assist its development partner Hexagon Energy (“Hexagon”). The secured facility will fund the refundable portions of certain MISO interconnection deposits for six solar development projects totaling approximately 1,500 MWac that Hexagon has selected for advancement in the MISO interconnection queue. These projects are part of Hexagon’s approximately 7.0 GW development portfolio from which Great Bay will receive future royalties. Great Bay is jointly controlled by ARR and certain funds managed by affiliates of Apollo (NYSE: APO), who have funded the transaction on an equal basis.
Great Bay will receive monthly interest payments during the term at an interest rate that falls within Great Bay’s target return threshold. The facility with Hexagon can be drawn in tranches, will mature on December 31, 2024 and will be funded partially through GBR cash and partially through GBR’s new LC facility established as part of its larger $247 million credit facility announced in Q4 2023. The facility contains customary terms including information and inspection rights, positive and negative covenants and acceleration upon an event of default.
Frank Getman, CEO of Great Bay, commented, “This deal provides ongoing support to an important development partner, enabling Hexagon to better utilize the development funding provided by Great Bay under our existing arrangement closed last year to advance critical development activities within its pipeline and accelerate the creation of new GBR royalties rather than tying up capital with interconnection deposits.” Getman added, “One of the added benefits of this deal is establishing and confirming the process for Great Bay to post interconnection deposits with MISO on behalf of third parties while maintaining control of those funds. We’re hopeful that this could be the beginning of an entirely new product that would result in new royalties or options to acquire royalties with other developers who are not currently partners with Great Bay. Funding interconnection deposits may represent the single biggest pain point in the renewables market today. We’re working hard to make this new product part of the solution,” said Getman.
About ARR
ARR is a renewable energy royalty company whose business is to provide long-term, royalty level investment capital to renewable power developers, operators, and originators. ARR has 33 renewable energy royalties representing approximately 2.4 GW of renewable power on operating projects and an additional approximately 6 GW on projects in development phase, across several regional power pools in the U.S. ARR also expects future royalties from GBR's investments in Bluestar Energy Capital, Hodson Energy and Hexagon. ARR combines industry expertise with innovative, partner-focused solutions to further the growth of the renewable energy sector as it fulfills its critical role in enabling the global energy transition.
Forward-looking information
This news release contains forward‐looking information as defined under Canadian securities laws which reflect management’s current expectations. Some of the specific forward-looking statements contained herein include, but are nonlimited to, the projected revenues on the Royalty. The statements are based on reasonable assumptions and expectations of management and ARR provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although ARR believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Readers should not place undue reliance on forward-looking information. ARR does not undertake to update any forward-looking information contained herein except in accordance with securities regulation. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements. Additional information about risks and uncertainties is contained in the filings of ARR under the Company’s profile at www.sedarplus.ca.
