RE Royalties Enters into USD $3.9 Million Loan and Royalty Agreement with Delta Energy Partners
RE Royalties Enters into USD $3.9 Million Loan and Royalty Agreement with Delta Energy Partners for Energy-as-a-Service Projects in Puerto Rico
All amounts in US dollars unless otherwise stated
November 1, 2022, Vancouver, BC – RE Royalties Ltd. (TSX.V: RE) (OTCQX: RROYF) (“RE Royalties” or the “Company”), a global leader in renewable energy royalty-based financing, has entered into a loan and royalty agreement with Delta Energy Partners (“Delta”), a provider of Energy-as-a-Service (“EaaS”) solutions to customers in Puerto Rico for USD $3.9 million (the “Loan”).
The Loan will finance the procurement and installation of energy efficiency and building energy equipment that will be paid for by Delta’s clients, consisting of government entities and large commercial companies, over an average 10-year contracted period. The Loan will be drawn in tranches with a term of 5 years at a 12.15% interest rate per annum, plus a 2% commitment fee on undrawn amounts. The Company will also receive a 10-year royalty of 4% on invested capital (the “Royalty”) commencing the 30th month after closing.
This transaction is the second co-investment with Franklin Park, who the Company previously worked with to complete a USD $4.6 million renewable natural gas investment in March 2022.
Delta is an innovative energy solutions company focused on providing EaaS to customers in Puerto Rico. The principals and owners of Delta have completed EaaS retrofits in over 250 buildings in the US and Puerto Rico since 2014. Delta plans to retrofit customer facilities with energy efficiency technologies, such as LED lighting, smart lighting, water conservation, building energy management systems, HVAC, insulation, as well as renewable power generation and energy storage products, enabling buildings to eventually achieve net zero energy consumption (or “Net Zero”).
With Puerto Rico currently generating approximately 97% of its electricity using fossil fuel, EaaS provides the opportunity for government entities, businesses, and residents to substantially reduce energy consumption and generate tangible cost savings while dramatically minimize carbon footprint.
“Energy efficiency represents one of the lowest hanging fruits for governments, businesses, and residents to decarbonize. We are excited about this opportunity to enter the Puerto Rico market and look forward to working with the Delta team on helping Puerto Rico reach their Net Zero objectives,” said Bernard Tan, CEO of RE Royalties. “Our company is in a unique position to provide a flexible, effective, and timely suite of royalty financing options to help our clients grow and we look forward to collaborating with Delta on future projects.”
“Delta was founded to vastly enhance the affordability and accelerate the adoption of building and distributed energy technologies through the EaaS model,” said James Tu, CEO of Delta Energy Partners. “We are excited to have the support of RE Royalties as we work to become a leading EaaS platform company to help businesses and countries reach Net Zero and energy independence by providing impactful solutions through established technologies, project integration and innovative financing”.
“Franklin Park is pleased to be partnering again with RE Royalties for an investment in the green technology and sustainability market,” said Kevin Lapidus, CIO of Franklin Park Investments.
On Behalf of the Board of Directors,
About RE Royalties Ltd.
RE Royalties Ltd. acquires revenue-based royalties over renewable energy facilities and technologies by providing non-dilutive financing solutions to privately held and publicly traded companies in the renewable energy sector. RE Royalties is the first to apply this proven business model to the renewable energy sector. The Company currently owns over 100 royalties on solar, wind, hydro, battery storage, energy efficiency and renewable natural gas projects in North America, Mexico, and Europe. The Company’s business objectives are to provide shareholders with a strong growing yield, robust capital protection, high rate of growth through re-investment and a sustainable investment focus.
For further information, please contact:
Investor and Media Contact:
RE Royalties Ltd. Talia Beckett, VP of Communications and Sustainability T: (778) 374‐2000
E: email@example.com www.reroyalties.com
Franklin Park Investments
Kevin Lapidus, Chief Investment Officer
T: (301) 500-8660
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction, nor shall there be any offer or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been approved or disapproved by any regulatory authority nor has any such authority passed upon the accuracy or adequacy of the short form base shelf prospectus or the prospectus supplement. The offer and sale of the securities has not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold in the United States or to United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Forward Looking Statements
This news release includes forward-looking information and forward-looking statements (collectively, "forward-looking information") with respect to the Company and within the meaning of Canadian securities laws. Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. This information represents predictions and actual events or results may differ materially. Forward-looking information may relate to the Company’s future outlook and anticipated events or results and may include statements regarding the Company’s financial results, future financial position, expected growth of cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, industry trends and growth opportunities including financing. The reader is referred to the Company’s most recent filings on SEDAR for a more complete discussion of all applicable risk factors and their potential effects, copies of which may be accessed through the Company’s profile page at www.sedar.com.