Financial construction inked for solar units takeover

Canadian investment vehicle Transeastern Power Trust issued a statement reporting it agreed to take over two solar parks in Romania from RG Renovatio Group Limited. The price is about USD 9.6 million (EUR 8.45 million), based on prevailing exchange rates and not accounting for debt, the buyer said. A portion is payable by the issuance of trust units of EUR 0.88 each, where Transeastern, which completed the first tranche of a previously announced private placement, issued an aggregate of 5.4 million subscription receipts, each exercisable into one unit of the trust and one trust unit purchase warrant expiring in maximum 36 months.

The vehicle, via its subsidiaries, will be assuming certain financing from UniCredit Leasing Corporation IFN, the statement said. The solar power plants have been in production for over two years. J. Colter Eadie, chief executive officer of Transeastern, commented: „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.“

Transeastern Power 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.

In June 2014, Transeastern bought 11 small hydropower plants in Romania, with an installed capacity of 5.1 MW, from Rott, Zagra and Suha projects, one of the sellers being Romenergo, Energy World magazine’s portal said.