TEL AVIV, Israel, May 30, 2018 /PRNewswire/
-- Ellomay Capital Ltd. (NYSE American:
ELLO) (TASE: ELLO) ("Ellomay" or
the "Company"), a renewable energy and power
generator and developer of renewable energy and power projects in
Europe and Israel, today
announced that five of its Italian subsidiaries entered into a
euro 35.9 million project finance
Facility Agreement (the "Facility Agreement").
The Facility Agreement was executed among Ellomay PV Two S.r.l,
Ellomay PV Seven S.r.l., Pedale S.r.l., Soleco S.r.l and
Tecnoenergy S.r.l (together, the "Subsidiaries") and
Mediocredito Italiano S.p.A (the "Lender") and Intesa
Sanpaolo S.p.A. (as account bank). The euro
35.9 million principal amount is divided into: (i) five term
loan facilities, one for each Subsidiary, which are to be used to
refinance the existing financing of the Subsidiaries and for
general purposes of the Subsidiaries, in the aggregate amount of
euro 33.7 million with terms ending
in May 2028, and (ii) five revolving
facilities, one for each Subsidiary, aimed to cover financial needs
for the debt service coverage in case of Subsidiaries liquidity
shortfall, in the aggregate amount of euro
2.2 million with terms ending in November 2027.
The loans provided under the Facility Agreement bear a
semiannual interest rate equal to the Euribor 6 month rate plus a
margin of 185 basis points. The Facility Agreement includes
customary terms, including a default interest that will accrue a
delay in payments, requirements to maintain financial ratios,
various securities provided by the Subsidiaries and a pledge on the
shares of the Subsidiaries and subordination agreement provided by
Ellomay Luxemburg, our wholly-owned subsidiary and the parent
company of the Subsidiaries. The Facility Agreement provides for a
cross-collateralization mechanism among the Subsidiaries, whereby
each Subsidiary shall guarantee each other's obligations under the
Facility Agreement and the other finance documents for a maximum
guaranteed amount up to 180% of the relevant Subsidiary's loan
facility. In addition, the Company provided guarantees in
connection with specific exposures, one in the amount of
approximately euro 1.8 million (an
amount that is gradually reduced to zero on January 1 of each of the years 2019-2021) and the
second in amounts ranging between approximately euro 1.0 million up to a maximum of euro 1.5 million through the date the loans under
the Facility Agreement are repaid in full.
The Facility Agreement provides that the Subsidiaries shall
enter into interest swap agreements effective from the first
repayment date of June 2018 for an
amount equal to 75% of the overall amount of the term loan
facilities. The Subsidiaries entered into the swap agreements on
May 29, 2018 with respect to
approximately Euro 25 million (with a
decreasing notional principal amount based on the amortization
table) until May 2028 , replacing the
Euribor 6 month rate with a fixed 6 month rate of 0.71%, resulting
in a fixed 6 month interest rate of 2.56%.
The Subsidiaries will use the funds borrowed under the Facility
Agreement to repay outstanding loans and leasing agreements in the
aggregate amount of approximately euro 13.2
million to be repaid upon drawdown.
Ran Fridrich, CEO and a board member of Ellomay commented: "This
project finance agreement enables Ellomay to recycle existing debt
at improved conditions, while leaving Ellomay with liquid resources
for investment in the Talasol project that is in advanced stages
towards financial closing."
About Ellomay Capital Ltd.
Ellomay is an Israeli based company whose shares are registered
with the NYSE American and with the Tel Aviv Stock Exchange under
the trading symbol "ELLO". Since 2009, Ellomay Capital focuses its
business in the renewable energy and power sectors in Europe and Israel.
To date, Ellomay has evaluated numerous opportunities and
invested significant funds in the renewable, clean energy and
natural resources industries in Israel, Italy
and Spain, including:
- Approximately 22.6MW of photovoltaic power plants in
Italy, approximately 7.9MW of
photovoltaic power plants in Spain
and a photovoltaic power plant of approximately 9 MW in
Israel;
- 9.375% indirect interest in Dorad Energy Ltd., which owns and
operates one of Israel's largest
private power plants with production capacity of approximately 850
MW, representing about 6%-8% of Israel's total current electricity
consumption;
- 75% of Chashgal Elyon Ltd., Agira Sheuva Electra, L.P. and
Ellomay Pumped Storage (2014) Ltd., all of which are involved in a
project to construct a 156 MW pumped storage hydro power plant in
the Manara Cliff, Israel;
- 51% of Groen Gas Goor B.V. and of Groen Gas Oude-Tonge B.V.,
project companies operating or developing anaerobic digestion
plants with a green gas production capacity of approximately 375
Nm3/h, in Goor, the Netherlands
and 475 Nm3/h, in Oude Tonge, the
Netherlands, respectively.
Ellomay Capital is controlled by Mr. Shlomo Nehama, Mr. Hemi
Raphael and Mr. Ran Fridrich. Mr. Nehama is one of
Israel's prominent businessmen and
the former Chairman of Israel's
leading bank, Bank Hapohalim, and Messrs. Raphael and Fridrich both
have vast experience in financial and industrial businesses. These
controlling shareholders, along with Ellomay's dedicated
professional management, accumulated extensive experience in
recognizing suitable business opportunities worldwide. Ellomay
believes the expertise of Ellomay's controlling shareholders and
management enables the Company to access the capital markets, as
well as assemble global institutional investors and other potential
partners. As a result, we believe Ellomay is capable of considering
significant and complex transactions, beyond its immediate
financial resources.
For more information about Ellomay, visit
http://www.ellomay.com.
Information Relating to Forward-Looking Statements
This press release contains forward-looking statements that
involve substantial risks and uncertainties, including statements
that are based on the current expectations and assumptions of the
Company's management. All statements, other than statements of
historical facts, included in this press release regarding the
Company's plans and objectives, expectations and assumptions of
management are forward-looking statements. The use of certain
words, including the words "estimate," "project," "intend,"
"expect," "believe" and similar expressions are intended to
identify forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. The Company
may not actually achieve the plans, intentions or expectations
disclosed in the forward-looking statements and you should not
place undue reliance on the Company's forward-looking statements.
Various important factors could cause actual results or events to
differ materially from those that may be expressed or implied by
the Company's forward-looking statements, including weather
conditions, regulatory changes, changes in the supply and prices of
resources required for the operation of our facilities (such as
waste and natural gas), changes in demand and technical and other
disruptions in the operations or construction of the power plants
owned by us. These and other risks and uncertainties
associated with the Company's business are described in greater
detail in the filings the Company makes from time to time with
Securities and Exchange Commission, including its Annual Report on
Form 20-F. The forward-looking statements are made as of this date
and the Company does not undertake any obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Contact:
Kalia Weintraub
CFO
Tel: +972-(3)-797-1111
Email: limors@ellomay.com
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SOURCE Ellomay Capital Ltd