VANCOUVER, Oct. 11, 2016 /PRNewswire/ - Alterra Power Corp. (TSX: AXY) ("Alterra") and Inovateus Solar LLC ("Inovateus") are pleased to announce the closing of a $8.9 million construction loan facility (all amounts USD) for the Kokomo solar project, an approximately 7 MWDC solar project located in Kokomo, Indiana (the "Project").
The facility is supplied by 1st Source Bank, a subsidiary of 1st Source Corporation (NASDAQ: SRCE) ("1st Source") and consists of a $8.9 million construction loan plus a $150,000 letter of credit. Concurrently with the construction loan closing, 1st Source is providing a $4.0 million tax equity investment commitment and a $5.0 million term loan takeout which will be used to repay the construction loan upon commencement of commercial operations (each subject to typical conditions precedent). The term loan will have a balloon payment based on a 10-year maturity and 18-year amortization. The term loan proceeds will be used to pay for the portion of remaining Project costs not paid by the tax equity investment.
Separately, Alterra completed its previously announced partnership agreement with Inovateus. Alterra will hold a majority interest of 75% or more in the project, though the final partnership allocations are subject to change under certain circumstances prior to term loan conversion.
The Kokomo solar project is currently under construction in Kokomo, Indiana and is expected to begin commercial operations in December 2016. The Project is contracted under a 20-year power purchase agreement with Duke Energy Indiana for 100% of plant output. Construction is being managed by Inovateus, who will also provide operations and maintenance services under a long-term contract. Alterra will manage and administer the Project. The Kokomo solar project will provide 7 MWDC of clean power capacity and economic benefit to the Indiana community and is located on a remediated Superfund parcel of city-owned land.
"Closing the financing for the Project marks another step toward bringing more renewable energy to Indiana and the greater Midwest region," said TJ Kanczuzewski, President of Inovateus. "We look forward to operating and maintaining the Project and the Michigan project now in development."
Alterra and Inovateus are actively developing a second solar project, a 13 MWDC site located in Michigan, which is expected to enter construction in 2017. The Michigan solar project is contracted under a 25-year, investment-grade power purchase agreement.
"We're pleased to complete the Kokomo financing on commercially favorable terms with 1st Source and Inovateus," said Jon Schintler, VP of Project Finance at Alterra, "and we look forward to building the Michigan solar project next year. We look forward to advancing these relationships as we develop and build further projects together."
About Alterra Power Corp.
Alterra Power Corp. is a leading global renewable energy company, operating seven power plants totaling 819 MW of generation capacity including British Columbia's largest run-of-river hydro facility and largest wind farm, the recently completed Shannon and Jimmie Creek projects, and two geothermal facilities in Iceland. Alterra owns a 381 MW share of this capacity, generating over 1,700 GWh of clean power annually. Alterra also has an extensive portfolio of exploration and development projects and a skilled team of developers, builders and operators to support its growth plans.
Alterra trades on the Toronto Stock Exchange under the symbol AXY.
About Inovateus Solar
Inovateus Solar is one of the leading solar development, EPC (engineering, procurement and construction) and supply companies in the Midwest United States. Headquartered in South Bend, Indiana, the company has developed and built more than 250 MW of utility, commercial and industrial, and microgrid solar systems in the U.S., the Caribbean and Latin America. With strong roots in the communities it serves, Inovateus is passionately committed to Building A Brilliant TomorrowTM through the wide-scale deployment of advanced solar and clean energy technologies.
Cautionary Note Regarding Forward-Looking Information
Certain statements and information included in this news release are "forward-looking information" within the meaning of applicable securities laws that involve risks and uncertainties. Forward-looking information relates to future events or future performance and reflects management's expectations and beliefs regarding future events as of the date hereof. Examples of forward-looking information in this news release include the date the Kokomo project will achieve commercial operations, closing of the Kokomo tax equity investment and term loan conversion, the development and addition of future projects, and the timing of development and construction of the Michigan project. Forward-looking information is based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection. Since forward-looking information relates to future events and conditions, by its very nature it requires making assumptions and involves inherent risks and uncertainties. Alterra cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking information. Material risk factors and assumptions include the fulfillment of conditions precedent for the financings, in addition to those set out in the management's discussion and analysis section of Alterra's most recent annual and quarterly reports and in Alterra's Annual Information Form for the year ended December 31, 2015. Although Alterra has attempted to identify important factors that could cause actual actions, events or results to differ materially from forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate and undue reliance should not be placed on forward-looking information. Except as required by law, Alterra undertakes no obligation to update any forward-looking information to reflect new information, subsequently or otherwise.
SOURCE Alterra Power Corp.