TEL AVIV, Israel, Jan. 21, 2022 /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,
achieved financial closing of the previously announced Facilities
Agreement in the aggregate amount of €175 million provided by
European institutional lenders (the "New Financing").
Due to its gearing ratio, duration and the fact that a great
majority of the financing is based on merchant revenues, the New
Financing is first of a kind in the European PV sector for
non-subsidized projects. The New Financing 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. 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 original
project finance of Talasol (the "Previous 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 Previous Financing.
The uses of the New Financing amount are as follows:
- Prepayment of the outstanding €121 million amount of the
Previous Financing;
- Deposit of €6.9 million in Talasol's bank account as a debt
service fund;
- Deposit of €10 million 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;
- Unwinding of the interest rate SWAP entered into in connection
with the Previous Financing in an amount of €3.29 million;
- Transaction costs in an amount of approximately €3 million;
and
- An expected special dividend to Talasol's shareholders in an
amount of approximately €31 million (the "Special
Dividend").
The expected Special Dividend, together with the regular
dividend for the period ending in September
2021 in an amount of €5.3 million and the release of the
contingent equity deposited by Talasol's shareholders in connection
with the Previous Financing in an amount of €4.3 million aggregates
to a cash flow to Talasol's shareholders in an amount of
approximately €41 million, of which the Company's expected share is
approximately €20.9 million.
"We are very pleased with the refinancing of Talasol's debt,"
said Ran Fridrich, Ellomay's CEO and a Board member. "The new
financing is a game changer for the industry and for Talasol,
representing an increase in the expected average DSCR from 1.3 to
1.7, which is expected to improve Talasol's annual average free
cash flow for distributions by approximately €3 million, to an
annual average of approximately €3 million – during the remaining 9
years of the Talasol project's PPA. 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 investment team that worked tirelessly and
succeeded in obtaining and executing this landmark 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; and
- 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
distribution of funds to Talasol's shareholders, 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
CFO
+972 (3) 797-1111
hilal@ellomay.com
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SOURCE Ellomay Capital Ltd.