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RE Royalties Acquires New Royalty on 27MW Solar Project in Pennsylvania
All amounts in US dollars unless otherwise stated. VANCOUVER, BC / ACCESSWIRE / February 6, 2...
About this update from Re Royalties Ltd.
[{"type":"text","content":"RE Royalties Acquires New Royalty on 27MW Solar Project in PennsylvaniaAll amounts in US dollars unless otherwise stated.VANCOUVER, BC / ACCESSWIRE / February 6, 2023 / RE Royalties Ltd. (TSX.V:RE)(OTCQX:RROYF) (\"RE Royalties\" or the \"Company\"), a global leader in renewable energy royalty-based financing, is pleased to announce that it has acquired a gross revenue royalty on the 27 MWDC (20 MWAC) Jackson Center Solar Project Phase 2 (\"Jackson Center 2\" or the \"Project\"), located in Mercer County, Pennsylvania, under development by Teichos Energy LLC (\"Teichos\"). Once operational, Jackson Center will generate an estimated 42,800 MWh per year of clean energy. The Company has entered into a secured loan agreement (the \"Loan\") with Teichos whereby the Company will provide a USD $1.8 million letter of credit (\"LC\") on behalf of Teichos to meet their security requirement with PJM Interconnection (\"PJM\").The Loan will have an initial 6-month term and bear an interest rate of 13% per annum, compounded annually, and payable at the end of the term. The Loan can be extended for two additional 6-month terms. The Company will have first-ranking security interest over the Project including a lien over Project assets, and a pledge of ownership in the Project. The Company will receive a 1% gross revenue royalty on the Project (the \"Royalty\") for a period of 15 years once the Project reaches commercial operation. If the Loan term is extended, the Royalty will increase to 1.5% (6-month extension) or 2% (12-month extension).In October 2021, the Company made a USD $2.2 million loan to Teichos as part of Jackson Center Solar Project Phase 1 (\"Jackson Center 1\"). Bernard Tan, CEO of the Company stated \"We are excited to continue to work with the Teichos team on the second phase of the Jackson Center Project. We are pleased to see the progress made to date and our non-dilutive royalty financing solution provides Teichos with the flexibility to continue advancing this Project and to bring it one step closer to commercial operation.\" Steve Voorhees, the CEO of Teichos stated, \"Teichos is impressed with RE Royalties capabilities, staff, work ethic and approach to business. Their stellar responsiveness to our needs on this Project is refreshing and we look forward to doing business with them going forward.\"On Behalf of the Board of...