Transeastern Power Trust to refinance $20 million in debt
Written By: Stratton Report
May 13, 2016
On May 13, Transeastern Power Trust announced that it will refinance EUR 17.5 million ($19.8 million) of existing debt facilities secured by the assets of the trust’s solar subsidiaries, Corabia Solar S.A. and Power L.I.V.E. ONE S.A..
The current interest rate on the debt facilities will be reduced from 7% annually to 5.95% annually until maturity of the facilities on October 31, 2023. The reduction in the interest rate will result in an estimated annual interest saving to the trust of approximately $700,000.
The refinancing requires the deleveraging of the Corabia and PowerLIVE assets currently contemplated as part of the previously announced acquisitions of wind and hydro projects. The closings for the acquisitions and the refinancing are expected to occur at the end of June 2016.
Mr. J. Colter Eadie, Chief Executive Officer of Transeastern, commented:
“We continue to enjoy a constructive relationship with our senior lenders as evidenced by this refinancing. Completing the refinancing of the debt at our solar operations is a critical step in closing the previously announced acquisitions of wind and hydro renewable generation operations and improving the profitability of Transeastern by lowering its total cost of capital.”
Transeastern also announced that it has closed a second tranche of its previously announced private placement of 316,399 units for gross proceeds of approximately $222,000.