March 31 (Renewables Now) - Windlab Ltd (ASX:WND) has obtained AUD 20 million (USD 12.3m/EUR 11.2m) in debt from the duo that recently proposed to take over the Australian wind farm developer, the latter said today.
Federation Wind Acquisition 1 Pty Ltd, an investment vehicle of funds managed by Federation Asset Management Holdings Pty Ltd, and Squadron Wind Energy Development Pty Ltd made a takeover offer for Windlab for AUD 1.0 per share in cash earlier this month. The two firms have now extended a three-year loan to their target, providing it with cash to manage future project delays. Among these is the Kennedy Energy Park (KEP) in Queensland that is facing lengthy delays due to failures to secure approvals for its generator performance standard (GPS).
Windlab previously said it expects to book up to AUD 20 million in non-cash impairments for 2019 caused by the huge delay of the wind-solar-storage power complex.
The Australian developer noted it has explored alternative funding options to enhance its balance sheet but concluded the latest transaction offered “the most favourable commercial terms.” The debt will have an interest of 15% per year before shareholder approval is granted and 8% thereafter. Under its terms, Windlab will have to make quarterly repayments to the lenders and repay it in full if the company is subsequently acquired by a third-party.
Federation Asset Management already owns about 18.7% in Windlab.
(AUD 1.0 = USD 0.617/EUR 0.561)