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RE Royalties Enters into USD $3.9 Million Loan and Royalty Agreement with Delta Energy Partners for Energy-as-a-Service Projects in Puerto Rico
All amounts in US dollars unless otherwise stated VANCOUVER, BC / ACCESSWIRE / November ...
About this update from Re Royalties Ltd.
[{"type":"text","content":"RE Royalties Enters into USD $3.9 Million Loan and Royalty Agreement with Delta Energy Partners for Energy-as-a-Service Projects in Puerto RicoAll amounts in US dollars unless otherwise statedVANCOUVER, BC / ACCESSWIRE / November 1, 2022 / RE Royalties Ltd. (TSXV:RE)(OTCQX:RROYF) (\"RE Royalties\" or the \"Company\"), a global leader in renewable energy royalty-based financing, has entered into a loan and royalty agreement with Delta Energy Partners (\"Delta\"), a provider of Energy-as-a-Service (\"EaaS\") solutions to customers in Puerto Rico for USD $3.9 million (the \"Loan\").The Loan will finance the procurement and installation of energy efficiency and building energy equipment that will be paid for by Delta's clients, consisting of government entities and large commercial companies, over an average 10-year contracted period. The Loan will be drawn in tranches with a term of 5 years at a 12.15% interest rate per annum, plus a 2% commitment fee on undrawn amounts. The Company will also receive a 10-year royalty of 4% on invested capital (the \"Royalty\") commencing the 30th month after closing.This transaction is the second co-investment with Franklin Park, who the Company previously worked with to complete a USD $4.6 million renewable natural gas investment in March 2022.Delta is an innovative energy solutions company focused on providing EaaS to customers in Puerto Rico. The principals and owners of Delta have completed EaaS retrofits in over 250 buildings in the US and Puerto Rico since 2014. Delta plans to retrofit customer facilities with energy efficiency technologies, such as LED lighting, smart lighting, water conservation, building energy management systems, HVAC, insulation, as well as renewable power generation and energy storage products, enabling buildings to eventually achieve net zero energy consumption (or \"Net Zero\"). With Puerto Rico currently generating approximately 97% of its electricity using fossil fuel, EaaS provides the opportunity for government entities, businesses, and residents to substantially reduce energy consumption and generate tangible cost savings while dramatically minimize carbon footprint.\"Energy efficiency represents one of the lowest hanging fruits for governments, businesses, and residents to decarbonize. We are excited about this opportunity to enter the Puerto Rico market and lo...