San Jacinto-Tizate Project
Phase I, which commenced commercial operation in January 2012, generated 299,904 net MWh resulting in revenue of $28.1 million (an increase of 529%) and Adjusted EBITDA (as defined below) of $10.4 million in 2012 compared to revenue of $4.4 million and Adjusted EBITDA of $(12.6) million in 2011;
Successfully negotiated a 17% increase to the tariff under the power purchase agreement to recoup additional project costs and enhance overall project returns; The new tariff is expected to result in an increase in annual revenue of approximately $10 million in 2013; and Successful completion of the Phase II project as scheduled and budgeted with commercial operation attained in December 2012.
Refinance of Corporate Credit Facility through the issuance of Senior Debentures
Successfully closed a C$50.9 million Senior Debenture Private Placement; The net proceeds of the Private Placement, together with approximately C$4 million of the Company’s funds, were used to repay in full the Company’s existing corporate credit facility and associated transaction costs;
The Private Placement resulted in the Company reducing its cost of funds on its corporate debt from 16% to 8.5% on a per annum basis; The Private Placement extended the term of the Company’s corporate debt from September 30, 2013 to March 27, 2018 with the Senior Debentures maturing on that date; and
The January and February payments-in-kind of interest and fees with common shares under the prior corporate credit facility combined with the Private Placement is expected to increase the Company’s liquidity $1.3 million in 2013 and $3.8 million annually thereafter.
Reorganization of its Reno, Nevada office
Optimizes efficiency and aligns the organization to better focus on Nicaragua operations; and
Resulted in expected savings of $3 million in 2013, and $4 million annually thereafter.
Source: Ram Power
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