TEL AVIV, Israel, Dec. 8, 2021 /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
Talasol Solar S.L. ("Talasol"), which owns a photovoltaic
plant with installed capacity of 300MW in the municipality of
Talaván, Cáceres, Spain and is 51%
owned by the Company, entered into a Facilities Agreement with
European institutional lenders (the "Facilities
Agreement").
The Facilities Agreement provides for the provision of a term
loan facility in two tranches: (i) a term loan in the amount of
€155 million for 22.5 years, and (ii) a term loan in the amount of
€20 million for 21 years (together, the "New Financing").
The aggregate New Financing amount (€175 million), will be used by
Talasol to repay the current outstanding project finance debt of
Talasol in the amount of €121 million (the "Current
Financing"). The weighted average life of the New Financing is
approximately 11.5 years, compared to an original weighted average
life of 5.5 years of the Current Financing. The New Financing bears
a fixed annual interest rate at a weighted average of approximately
3%, compared to a variable interest rate that was fixed at an
average of approximately 3% by an interest rate swap contract in
the Current Financing. Out of the New Financing amount, €6.9
million will be deposited in Talasol's account as a debt service
fund and €10 million will be deposited in Talasol's bank account as
security for a letter of credit to the PPA provider (the "PPA
Security Fund"). The PPA Security Fund will be reduced by €1
million every year, up to a minimum amount of €3.5 million, which
will be released at the expiration of the PPA. The financial
closing of the New Financing is expected to occur in the coming
weeks.
"We are very pleased with the refinancing of Talasol's debt,"
said Ran Fridrich, Ellomay's CEO and a Board member. "The
refinancing represents an increase in the expected average debt
service coverage ratio from 1.3 to 1.7 and is expected to improve
the cash flow of Talasol over the remaining period of the PPA (nine
years) by approximately €3 million per year on average. The
immediate funds received from the refinance and the improved cash
flow in the coming 9 years are expected to significantly improve
Talasol's ability to distribute dividends to its shareholders,
including the Company. I would like to thank our business
development team that worked tirelessly and succeeded in obtaining
and executing this groundbreaking financing in a short time."
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 7.9MW of photovoltaic power plants in
Spain and a photovoltaic power
plant of approximately 9MW 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
860MW, representing about 6%-8% of Israel's total current electricity
consumption;
- 51% of Talasol, which owns a photovoltaic plant with installed
capacity of 300MW in the municipality of Talaván, Cáceres,
Spain;
- Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V. and Groen Gas
Gelderland B.V., project companies operating anaerobic digestion
plants in the Netherlands, with a
green gas production capacity of approximately 3 million, 3.8
million and 9.5 million (with a license to produce 7.5 million) Nm3
per year, respectively;
- 83.333% of Ellomay Pumped Storage (2014) Ltd., which is
involved in a project to construct a 156 MW pumped storage hydro
power plant in the Manara Cliff, Israel.
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 delays in the
financial closing of the New Financing and in the repayment of the
Current Financing, the impact of the Covid-19 pandemic on Talasol
and the Spanish energy market, changes in the market price of
electricity and in demand, regulatory changes, technical and other
disruptions in the operations of Talasol, as well as the risks and
uncertainties associated with the Company's business that 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. Furthermore, new risks and
uncertainties emerge from time to time, and it is not possible for
the Company to predict or assess the impact of every factor that
may cause its actual results to differ from those contained in any
forward-looking statements. 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 Rubenbach (Weintraub)
CFO
Tel: +972 (3) 797-1111
Email: hilal@ellomay.com
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SOURCE Ellomay Capital Ltd