Great Bay Renewables Announces First Large Scale Renewable Royalty Investment with TriGlobal Energy
Feb 11, 2019 | Great Bay Renewables News & Media
Portsmouth, NH (February 11, 2019) – Great Bay Renewables, Inc. (“Great Bay”) is pleased to announce that in addition to recently being acquired by Altius Renewable Royalties Corp., it has closed a $30 million royalty investment transaction with Tri Global Energy, LLC (“TGE”) to gain future revenue royalties related to TGE’s portfolio of wind energy development projects.
TGE is committing its current portfolio of over 1,500 megawatts (MW) of development projects as well as future projects it develops, but excluding projects already under a sales contract, to this new royalty investment structure with Great Bay, until key financial metrics are achieved. The $30 million royalty investment into a subsidiary of TGE will be provided in tranches as it achieves certain project advancement milestones. As TGE develops and sells individual projects, Great Bay will receive a gross revenue royalty on each project for the full life of the project.
Frank Getman, President and CEO of Great Bay, commented, “We are thrilled to partner with a top-notch developer like TGE for our first major renewable royalty investment. We look forward to a long partnership with TGE as they continue to grow and expand their pipeline of successful renewable energy projects.” Getman added, “There is a real need for new and innovative forms of capital to help develop and finance renewable energy projects, especially as the ITC and PTC government incentives ratchet down in the coming years, and we are in active discussions with several other renewable energy developers.”
“The Tri Global Energy team is continuing its track record of strong execution and strategic growth,” said John Billingsley, Chairman and CEO of Tri Global Energy. “2018 was one of our best years for completing and initiating renewable energy development projects. This transaction with Great Bay will accelerate our development and allow us to extend our involvement in these projects though their financial closings. This investment will help power the company forward through 2021 and beyond. I believe the time is right for innovative financing products like the renewable royalty investment provided by Great Bay.”
Great Bay was advised on this transaction by an advisory team from CCA Capital LLC led by Martin Pasqualini and a legal team at Pierce Atwood LLP led by Kris Eimicke.
Alphabet subsidiary completes equity deal in 199-MW Kan. wind facility
An Alphabet Inc. subsidiary completed the sale of 100% of its passive tax equity membership interests in the 199-MW Waverly Wind Farm, according to a Nov. 1 notice to the Federal Energy Regulatory Commission.
On Aug. 4, Oz Wind LLC filed an application to sell its passive stake in the facility to JPM Capital Corp. and New York Life Insurance Co. and/or New York Life Insurance & Annuity Corp. or their subsidiaries. FERC approved the transaction Sept. 22.
Each of the buyers now hold 50% class B interests in the facility. The class A membership interests in the Waverly wind farm, located in Coffey County, Kan., will still be 51% owned by EDP Renewables North America and 49% owned by Axium US Wind AcquisitionCo LLC.
Great Plains Energy Inc. subsidiary Kansas City Power & Light Co. purchases the output of the facility under a 20-year contract expiring in 2036.
JPM Capital is an indirect wholly owned subsidiary of JPMorgan Chase & Co. (FERC docket EC17-151)
CCA Group voted 2015 Power Asset M&A Adviser of the Year
Power Finance & Risk announced the winners of its 13th Annual Deals and Firms of the Year Awards at the PFR Awards Dinner at the Metropolitan Club in New York on Wednesday, April 18, 2016.
A poll of industry insiders decided the winners in 25 categories, including best project finance lender, best borrower and best law firm, identifying which market players best navigated the sometimes tricky conditions of 2015.
This year’s awards ceremony featured dedicated awards for Latin America and Canada for the first time, while retaining awards for best institutional investor in power and best tax equity investor.
FIRMS OF THE YEAR
Asset M&A Adviser of 2015: CCA Group