All amounts in US dollars unless otherwise stated
RE Royalties Ltd. ("RE Royalties" or the "Company"), a global leader in renewable energy royalty-based financing, is pleased to announce that it has acquired a sliding scale gross revenue royalty on the 27 MWDC (20 MWAC) Jackson Center Solar Project Phase 1 ("Jackson Center" or "Project") located in Mercer County, Pennsylvania.
Jackson Center is owned by Teichos Energy, LLC ("Teichos"), a renewable energy development company headquartered in Seattle, Washington and is an advanced stage solar project that is expected to reach commercial operation in 2023. Once operational, Jackson Center will generate 38,800 MWh per year of clean energy.
The Company has entered into a secured loan agreement (the "Loan") with Teichos whereby the Company provided a US$2.2M letter of credit on behalf of Teichos, for Teichos to post certain collateral for the Project's grid connection.
The Loan will have an initial term of 6 months and bear an interest rate of 10% per annum, compounded annually, and payable at the end of the term. The Company will have first-ranking security interest over the Project including a lien over Project assets, and a pledge of all equity capital in the Project.
The Company will receive a 1% gross revenue royalty on the Project (the "Royalty") for a period of 15 years once the Project reaches commercial operation. The Loan term can be extended for two additional 6-month increments, for a total extension of up to 12 months. If the Loan term is extended, the Royalty will increase accordingly.
Bernard Tan, CEO of the Company stated "We are excited to work with the Teichos team on this transaction to help further advance the Jackson Center Project. Our non-dilutive royalty financing solution provides Teichos with the flexibility to continue developing this Project and to bring it one step closer to commercial operation."
Steve Voorhees, the CEO of Teichos stated, "Teichos is impressed with RE Royalties capabilities, staff, work ethic and approach to business. Their stellar responsiveness to our needs on this Project is refreshing and we look forward to doing business with them going forward."