Romania, World: Transeastern Power Trust announces further securement of debt facilities

Transeastern Power has announced that it has closed $3.8 million of the secured debt facility announced in October. All references to $ in this press release are to Canadian dollars.

The existing secured indebtedness of the Trust of $4.55 million owed to Sprott Resource Lending has been fully repaid by a combination of a cash payment from the proceeds of the new debt facility and the issuance of a $1.47 million unsecured convertible promissory note. The Note bears interest at a rate of 5%, has a one year term, is convertible at the option of the holder into units in the capital of the Trust at a price of $0.31 per Unit or, if the Note is not fully converted or paid by the maturity date, is automatically converted into Units at a price equal to the volume weighted average price for the five trading days before maturity less the maximum discount allowed under the rules of the TSXV. The Note and the Units issuable upon the conversion thereof are subject to a four-month statutory hold period, in accordance with applicable securities legislation, and to the approval of the TSX Venture Exchange.

Colter Eadie, Chief Executive Officer of Transeastern, commented, “This refinancing transaction is an important step for the Trust to position it for growth creation for its shareholders.”

The Trust, through its direct and indirect subsidiaries in Canada, the Netherlands and Romania, has been formed to acquire interests in renewable energy assets in Romania, other countries in Europe and abroad that can provide stable cash flow to the Trust and a suitable risk-adjusted return on investment.



Source of the press release: Marketwired/Transeastern Power.


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