VANCOUVER, Aug. 8, 2017 /PRNewswire/ - Alterra Power Corp. (TSX: AXY) ("Alterra") and Inovateus Solar LLC ("Inovateus") are pleased to announce the closing of a $19.9 million construction loan facility (all amounts USD) for the Spartan solar project, an 11 MW solar project located on the Michigan State University campus in East Lansing, Michigan.
The loan facility is supplied by 1st Source Bank, a subsidiary of 1st Source Corporation (NASDAQ: SRCE) ("1st Source") and consists of a $19.8 million construction loan plus a $500,000 letter of credit. Concurrently with the construction loan, 1st Source will provide a $9.7 million tax equity investment commitment and a $10.2 million term loan commitment, both of which will be used to retire the construction loan facility upon achievement of commercial operations (each subject to typical conditions precedent). The term loan will have a balloon payment based on a 6-year maturity and 20-year amortization.
Separately, Alterra completed a partnership agreement with Inovateus, under which Alterra will manage the project and hold a majority interest of at least 85% (final partnership allocations are subject to final project economics and other factors).
Alterra expects the Spartan project (currently under construction) to achieve commercial operations in December 2017. Spartan is contracted under a 25-year power purchase agreement with the Board of Trustees of Michigan State University for 100% of plant output. Construction is being managed by Inovateus, who will also provide operations and maintenance services.
"We're pleased to complete this second project with our solar partner Inovateus, and to complete another financing with 1st Source," said Jon Schintler, VP of Project Finance & Development at Alterra. "We look forward to serving Michigan State University for many years and hopefully expanding our Midwest solar operations.
"We are very proud of our entire team on the development of the Spartan project. A special thank you to Michigan State University, along with our partners 1st Source Bank and Alterra for joining us in building a brilliant tomorrow," said TJ Kanczuzewski, President of Inovateus.
About Alterra Power Corp.
Alterra Power Corp. is a global renewable energy company that manages operations of eight power plants totaling 825 MW of hydro, wind, geothermal and solar generation capacity in Canada, the USA and Iceland. Alterra owns a 363 MW share of this capacity, generating over 1,500 GWh of clean power annually.
In addition to Spartan, Alterra is also constructing the 200 MW Flat Top wind project in central Texas, which is expected to be in operation by 1H 2018 (51% owned by Alterra). Upon the completion of Flat Top, Alterra will operate nine power plants totaling 1,025 MW of capacity and will own a 465 MW share of this capacity, generating almost 2,000 GWh of clean power annually. Alterra also has an extensive portfolio of 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 311 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 Tomorrow™ through the wide-scale deployment of advanced solar and clean energy technologies.
About 1st Source Bank
In a short time since its initial solar investment, 1st Source has already financed over 60 MWDC of solar power throughout the US, providing developers with both debt and equity financing. 1st Source values partnerships with forward-looking organizations like Alterra and Inovateus as a vital component of its solar strategy. Since 1863, 1st Source, with $5.5 billion in assets, has been committed to the success of the communities it serves with its comprehensive consumer and commercial banking operations in northern Indiana and southwestern Michigan and its specialized financing operations in private and cargo aircraft, construction equipment, and trucks on a national scale.
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 successful construction of, and achievement of commercial operations by, the Spartan and Flat Top projects; satisfaction of conditions precedent to the tax equity investment and Alterra's projected generation. 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 whether the actual power generation from our operations meets our expectations; the success and timely completion of construction efforts at the Spartan and Flat Top projects; achievement of commercial operations at the Spartan and Flat Top projects; Alterra's ability to successfully satisfy the conditions precedent to the tax equity investment; as well as others 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, 2016. 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.