Transeastern Power Trust decided to buy two photovoltaic solar power production plants in Romania, from RG Renovatio Group Limited, the Canadian company announced on Wednesday in a press release.
The gross purchase price for the Power Assets is approximately USD 9,600,000 (based on prevailing exchange rates) net of assumed bank debt, a portion of which is payable by the issuance of Trust Units at USD 1.00 per Trust Unit. The Canadian company, via its subsidiaries, will be assuming certain financing on the solar parks from UniCredit Leasing Corporation IFN. The purchase agreements contain other standard terms and conditions for the closing of the acquisitions.
The Power Assets are fully operational and have a total capacity of over 16 kWp. The plants have been in production for over two years and have performed consistently over that timeframe.
“We are pleased to have executed the purchase agreements and closed the first tranche of our equity offering. We are looking forward to the closing of the acquisitions and debt financing in the next few weeks,” J. Colter Eadie, Chief Executive Officer of Transeastern, commented.
Transeastern Power Trust also announced that has closed a tranche of its previously announced private placement, issuing subscription receipts valued at over USD 5.4 million. In connection with the offering the Trust entered into finders agreements with Sprott Global Resources Investments, Ltd., Palisade Capital Corp. and Canaccord Genuity Corp. and an agency agreement with Jacob Securities Inc.
Transeastern issued an aggregate of 5,410,194 subscription receipts (the “Subscription Receipts”) at a price of USD 1.00 per Subscription Receipt (the “Purchase Price”).
In June 2014, Transeastern bought in Romania 11 small hydropower plants with an installed capacity of 5.1 MW, from Rott, Zagra and Suha projects, one of the sellers being Romenergo, general contractor in the energy sector.