NTR Acquires Significant Shareholding in Wind Capital Group and Announces the Sale of Green Plains Renewable Energy Shares
March 02 2012
Dublin, 2nd March 2012: NTR plc, a leading investor in renewable energy and sustainable waste management businesses, today announces that it has increased its shareholding in Wind Capital Group, its US-based wind energy business, from 62% to 97%. In recent months, NTR has also invested further capital in Wind Capital Group as part of the financial close of its 201 megawatt (MW) Post Rock wind energy project and into other key projects in its development pipeline.
“Wind Capital Group has made significant progress in the last year and is on track to have 350MW of operating assets and a strong pipeline of follow on projects. In January, we announced the successful financing of the Post Rock wind energy project with a total funding of US$350 million put in place with top tier financial institutions. This was achieved in a tough capital market environment. Our increased shareholding in Wind Capital consolidates our position in the company at a time in which a substantive amount of operating assets are coming on-stream. Wind Capital represents a solid asset and is well positioned as a platform for NTR’s renewable activities in the US market,” said Michael McNicholas, Chief Executive Officer, NTR.
Green Plains Renewable Energy Share Sale
On 28th February, it was agreed between NTR and Green Plains Renewable Energy (GPRE) that GPRE would repurchase 3.7 million shares of its common stock from NTR at the price sold to the underwriter in the secondary offering described below. GPRE will purchase the shares using a combination of cash and debt.
Separately, NTR completed a secondary offering with Jefferies & Company, Inc. that saw a public offering of 3.45 million shares of its GPRE common stock at a price to the underwriter of US$10.06 per share. The shares were sold to the public at US$10.41 per share. Upon closing of the secondary offering and GPRE’s repurchase of shares, NTR will raise US$71.9 million, of which US$44.8 million will be immediately receivable in cash. NTR will continue to hold 577,653 GPRE shares. NTR’s ownership of GPRE’s outstanding common stock would reduce from 23% to approximately 2%. This move is in line with NTR’s strategy to rebalance the portfolio and the capital released from this transaction supports NTR’s investment in US wind.
NTR’s Focus
NTR continues to deliver against the strategic plan it announced last year to address the challenges faced by the company. Central to this plan is an ambition to drive operating performance and efficiencies across the Group, rebalance the portfolio of investments and grow the value of the portfolio.
“Today’s announcements are in line with our strategy and help rebalance the Group towards operating assets with strong cash generating potential in the medium term. The consolidation of our shareholding in Wind Capital Group has been timed to coincide with additional operating assets coming on-stream and in doing so, we will have advanced our position to being the substantive owner of a revenue generating wind business,” concludes Michael McNicholas.
Ends
Notes to Editors
About NTR plc
NTR plc is a leading investor in renewable energy and sustainable waste management businesses. Founded in 1978, NTR has evolved from being a developer and operator of infrastructure in Ireland to an international developer and operator of renewable energy and sustainable waste management businesses in the USA and Ireland. www.ntrplc.com
About Wind Capital Group
Formed in 2005, Wind Capital Group is an American company committed to harnessing a clean, renewable source of energy - creating jobs, generating economic opportunity and building a strong foundation for domestic energy independence. Wind Capital Group’s model is built on forming responsible partnerships with the communities in which it operates and providing long-term value for its investors. www.windcapitalgroup.com
About The 201MW Post Rock Wind Energy Project
Wind Capital Group’s 201MW Post Rock wind energy project is scheduled to come online in the second half of 2012 and will provide enough electricity to power over 70,000 homes. Kansas-based electric utility Westar Energy will purchase the power generated at Post Rock under a 20-year power purchase agreement. The project will use 134 General Electric 1.5-82.5 wind turbines.
Issued on behalf of NTR plc by:
Heneghan PR, Nigel Heneghan / Rachel Watchorn
Tel: + 353 1 660 7395 / Email: nigel@hpr.ie / rachel@hpr.ie