Juhl Energy Reaches Agreement To Acquire Two Operating Wind Projects In Iowa
Company Continues Emphasis of Acquiring Quality Renewable Energy Assets; Portfolio Will Now Include 5 Projects in Minnesota and Iowa
Pipestone, MN /PRNewswire/ - Juhl Energy, Inc. (OTCQB: JUHL, the "Company"), a leading provider of clean energy solutions and a leader in community wind power development, announced today that the Company, through its Juhl Renewable Assets, Inc. ("JRAI") division, recently reached a definitive agreement to acquire two operating wind farms in Iowa. The projects utilize GE turbines and total 3.24 megawatt nameplate capacity. The wind turbine projects are located in north central Iowa outside the towns of Manley and Kensett and have been commercially operating since November 2011. The transaction is expected to close in the next few months.
"This transaction underscores our ongoing commitment to building our residual, independent power production business made up of wind farms today and - we hope - other forms of renewable energy in the future," stated John Mitola, president of Juhl Energy. "We believe that building our asset ownership and operating division, with its predictable revenue and cash flow, is the foundation for the ongoing strength of our company. These two Iowa projects are representative of the thousands of projects under 50 MWs –the market sector where Juhl stands head and shoulders above others in its ability to own, operate and maintain such assets."
"The Iowa projects are being financed with bank debt and our Juhl Renewable Asset preferred stock," continued Mitola. "Currently our JRAI Preferred stock is only available to accredited investors who have an existing relationship with the Company. Our JRAI subsidiary is similar to many of the "yieldcos" that have recently received attention in the market, and it is paying a 9% yield reliably since inception. After we close on the Iowa projects, our JRAI division will own and operate 5 wind projects totaling approximately 25 megawatts. We maintain our long-term goal of building ownership capacity and hope to progress to management's stated goal of up to 200 megawatts - which would represent energy production assets with an initial installed cost of approximately $400 million. We believe we can get there by adding small projects alongside medium sized projects one step at a time over the next few years."
"To put our platform of accumulating energy assets in perspective, currently there are over 6,000 MWs of wind farms with nameplate capacity of less than 50 MW operating in North America. As a result, we believe our goals for additional asset acquisitions are reasonable given Juhl's presence in wind power industry and our position in the smaller wind space," said Mitola.
The two GE XLE 1.62 MW wind turbines are located in North Central Iowa near the towns of Manley and Kensett. The wind turbines are installed on private farmland approximately 10 miles apart from each other. Juhl Renewable Assets, Inc., Juhl Energy's wholly-owned subsidiary, will purchase both projects by acquiring 100% of the membership interests held by the existing owners for $2.0 million and the assumption of debt in place at the project level. The $2.0 million required to close on the Iowa projects will be raised through JRAI's 9.0% Series A Preferred equity offering to individual accredited investors and qualifying institutions that have an existing relationship with the Company.
"For years we have been approached by interested parties we knew who were looking for opportunities to invest directly in our renewable energy projects – so a few years ago we created our JRAI Preferred Stock. We believe with the creation of our JRAI Preferred equity vehicle, we have shown that we can secure assets more quickly, with a competitive cost of capital, while providing our JRAI Preferred investors with a solid annual yield on their investment," added Mitola.
For additional information on this transaction, please visit the Company's business and financial filings at www.sec.gov or within the Investor Info section of the Juhl Energy web site, www.juhlenergy.com.
ABOUT JUHL ENERGY, INC.
Juhl Energy is an established leader in the renewable energy industry with a focus on competitive, clean energy solutions and community-based wind power development, ownership and management throughout the United States and Canada. Juhl Energy pioneered community-based wind farms, developing the currently accepted financial, operational and legal structure providing local ownership of medium-to-large scale wind farms in rural America. To date, the Company has completed 24 wind farm projects totaling 240 MW and provides operations management and oversight across the portfolio. Juhl Energy services every aspect of wind farm development from full development and ownership, general consultation, construction management and system operations and maintenance. Juhl Energy also provides a broad range of clean energy solutions.
Juhl Energy operates three primary business segments: renewable energy development, renewable power plant ownership, and energy and telecommunications services. Through its Juhl Energy Development Inc. (JEDI) subsidiary, the Company provides medium and large-scale wind, solar, and cogeneration energy development services. With its acquisitions of the Iowa projects mentioned above, Valley View, Winona County and Woodstock Hills wind farms; the Company now owns and operates 25 MWs of wind power through its renewable power subsidiary, Juhl Renewable Assets, Inc. (JRAI). Through its third subsidiary, Juhl Energy Services, Inc. (JESI), and its acquisition of Power Engineers Collaborative, Inc., the Company provides a full range of engineering services to the energy industry, building systems markets, and heavy industry. JESI also provides full sales and service to smaller, on-site wind and solar projects through its Juhl Renewable Energy Systems division. JESI leverages the Company's deep experience with wind towers to also provide cell and radio tower services through its Juhl Tower Services division. Juhl Energy is based in Pipestone, Minnesota and has offices in Chicago, Minneapolis, Madison and Milwaukee. Juhl Energy is traded on the OTCQB under the symbol 'JUHL'. Additional information is available at the Company's website at www.juhlenergy.com or by calling (507) 562-8090.
FORWARD LOOKING STATEMENTS
This news release includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including statements that reflect Juhl Energy's current expectations about its future results, performance, prospects and opportunities. Juhl Energy has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "hope," or similar expressions. These forward-looking statements are based on information currently available to Juhl Energy and are subject to a number of risks, uncertainties and other factors that could cause Juhl Energy's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements and specifically those statements referring to any specific projects, prospective acquisitions and wind farm assets, and transactions mentioned herein. These risks may be described from time to time in Juhl Energy's subsequent SEC filings; and such factors as incorporated by reference.
SOURCE: Juhl Energy, Inc.Copyright 2014 PR Newswire. All Rights Reserved