Transeastern Power Trust buys two solar plants in Romania

Transeastern Power Trust said it has closed the previously announced acquisition of two photovoltaic plants in Romania at an aggregate purchase price net of assumed debt of about 9.0 million euro ($10 million).

The company has also closed a $5 million secured debt facility provided by Sprott Resource Lending Partnership and has completed the automatic exercise of previously issued subscription receipts, it said in a statement on Monday.

The price for the two solar plants is payable by way of approximately 4.17 million euro cash and the issuance of 6,812,070 units of the Trust at a deemed price of $1.00 each.

The solar plants are fully operational and have a total capacity of over 16MWp. They have been in production for over two years and have performed consistently over that timeframe.

"We have more than doubled our installed power production capacity on a basis that we expect to be immediately and highly accretive to the Trust and dramatically lowered our projected payout ratio," Transeastern CEO J. Colter Eadie said, commenting on the acquisition.

"We anticipate that approximately half of our power generation will now come from solar. This diversification reduces our exposure to hydrology, and de-risks our entire operation," he added.

Transeastern Power Trust Transeastern Power Trust is an unincorporated open-ended limited purpose trust. Through its direct and indirect subsidiaries in Canada, the Netherlands and Romania, it has been formed to acquire interests in renewable energy assets in Romania, other countries in Europe and abroad that can provide stable cash flow and a suitable risk-adjusted return on investment.

($ = 0.9037 euro)

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