Alberta Investment Management lends Tidewater Renewables $109M

In Canada, Tidewater Renewables Ltd. and Alberta Investment Management Corporation are pleased to announce the closing of a C$150 million five-year senior secured second lien credit facility with an affiliate of AIMCo, on behalf of certain of its clients.

The AIMCo Facility’s term is five years, maturing on October 24, 2027 and at closing was drawn down by way of a single advance with net proceeds reflecting a 5% original issue discount. The AIMCo Facility will bear initial interest of 6.50% per annum, payable semi-annually. The Base Interest Rate will increase by 37.5 basis points in year four and five and is subject to certain inflation escalators, with a potential maximum cash coupon of approximately 8.50% by year five. As part of the AIMCo Facility, Tidewater Renewables issued 3.375 million warrants to AIMCo. Each AIMCo Warrant entitles AIMCo to purchase one common share of Tidewater Renewables at a price per share of $14.84, for a term of five years. The exercise price reflects a 50% premium to the 10-day volume weighted average trading price of the Common Shares prior to closing of the AIMCo Facility. The AIMCo Warrants have a cashless exercise feature, which, if elected, can limit future dilution as in such circumstances only Common Shares for the in-the-money value of the Warrants are issued.

Proceeds of the AIMCo Facility will be used by Tidewater Renewables to repay 100% of the outstanding drawn credit under the Corporation’s senior credit facility, repay 100% of the outstanding drawn credit on the previously disclosed RNG credit facility as well as enable the cancelation of the RNG Facility, for working capital, general corporate purposes, and for growth projects.