Under the agreement, PC_Italia_02 paid €3.65 million (approximately $4.25 million) for certain assets, agreements and liabilities related to the ownership and operation of the three power plants. The three parks represent a total of 2.24MW of installed power located in the Budrio and Anagni regions of Italy.
The new parks, which have been operating for nearly 5 years, bring approximately €600k (approximately $700k) additional annual revenues to ALTN with over 85% operating margins. The parks benefit from feed-in-tariff (FiT) government incentives that guaranty a fixed sales price for every megawatt of energy that the parks generate over twenty years from the date of construction. As a result, ALTN has a backlog of approximately €9.5 million (approximately $11 million at current exchange rates) of contracted revenues over the next 15 years. Thereafter the parks will continue to operate profitably and sell the energy generated to the national grid at the then market rates.
Vincent Browne, CEO, President and Chairman of Alternus Energy commented, “It is personally very pleasing to finally complete this acquisition that we announced in late 2017. It emphasizes our continued commitment and growth in the Italian market going forward with additional strategic acquisitions in the pipeline there. These parks, coupled with our continuing expansion in Germany and in addition to our organic business, underpin our growing recurring annual revenues and income streams over the long term. We plan continued growth in the European market, organically as well as through strategic acquisitions of alternative energy assets and technology. These activities will continue to deliver accretive positive earnings and cashflows to ALTN which in turn will drive long term shareholder value.”
In order to fund the acquisition and associated costs, ALTN, through its Netherlands Holding company, entered into the following agreements with a third party accredited investor. The Company issued a loan note in the aggregate principal amount of €3,849,333 (the “Note”) accruing interest at 12% per annum and having a six month term and upon other terms and subject to the limitations and conditions set forth in the Note. Commensurate with the Note issuance, the Company also entered i) a Security Agreement whereby the Company grants a security interest in all of the Company’s property, and ii) a Guaranty whereby the Company guarantees the payment of the Note issued by PC Europe. ALTN is currently in negotiations with a leading bank in Italy to provide project finance for the parks that, if completed, will replace the Note with more suitable long-term financing.
Source: Company Press Release.
