PIPESTONE, Minn., May 8, 2014. Juhl Energy, Inc. (OTCQB: JUHL, the “Company”), a leading provider of clean energy solutions and a leader in community wind power development, announced today that the Company, through its Juhl Renewable Assets, Inc. (“JRAI”) division, recently reached a definitive agreement to acquire two operating wind farms in Iowa. The projects utilize GE turbines and total 3.24 megawatt nameplate capacity. The wind turbine projects are located in north central Iowa outside the towns of Manley and Kensett and have been commercially operating since November 2011. The transaction is expected to close in the next few months.
“This transaction underscores our ongoing commitment to building our residual, independent power production business made up of wind farms today and – we hope – other forms of renewable energy in the future,” stated John Mitola, president of Juhl Energy.
We believe that building our asset ownership and operating division, with its predictable revenue and cash flow, is the foundation for the ongoing strength of our company. These two Iowa projects are representative of the thousands of projects under 50 MWs –the market sector where Juhl stands head and shoulders above others in its ability to own, operate and maintain such assets.
“The Iowa projects are being financed with bank debt and our Juhl Renewable Asset preferred stock,” continued Mitola. “Currently our JRAI Preferred stock is only available to accredited investors who have an existing relationship with the Company. Our JRAI subsidiary is similar to many of the “yieldcos” that have recently received attention in the market, and it is paying a 9% yield reliably since inception. After we close on the Iowa projects, our JRAI division will own and operate 5 wind projects totaling approximately 25 megawatts. We maintain our long-term goal of building ownership capacity and hope to progress to management’s stated goal of up to 200 megawatts – which would represent energy production assets with an initial installed cost of approximately $400 million. We believe we can get there by adding small projects alongside medium sized projects one step at a time over the next few years.”
“To put our platform of accumulating energy assets in perspective, currently there are over 6,000 MWs of wind farms with nameplate capacity of less than 50 MW operating in North America. As a result, we believe our goals for additional asset acquisitions are reasonable given Juhl’s presence in wind power industry and our position in the smaller wind space,” said Mitola.
The two GE XLE 1.62 MW wind turbines are located in North Central Iowa near the towns of Manley and Kensett. The wind turbines are installed on private farmland approximately 10 miles apart from each other. Juhl Renewable Assets, Inc., Juhl Energy’s wholly-owned subsidiary, will purchase both projects by acquiring 100% of the membership interests held by the existing owners for $2.0 million and the assumption of debt in place at the project level. The $2.0 million required to close on the Iowa projects will be raised through JRAI’s 9.0% Series A Preferred equity offering to individual accredited investors and qualifying institutions that have an existing relationship with the Company.
“For years we have been approached by interested parties we knew who were looking for opportunities to invest directly in our renewable energy projects – so a few years ago we created our JRAI Preferred Stock. We believe with the creation of our JRAI Preferred equity vehicle, we have shown that we can secure assets more quickly, with a competitive cost of capital, while providing our JRAI Preferred investors with a solid annual yield on their investment,” added Mitola.
For additional information on this transaction, please visit the Company’s business and financial filings at www.sec.gov or within the Investor Info section of the Juhl Energy web site, www.juhlenergy.com.
ST Staff Writers
This post was prepared by Solar Thermal Magazine staff.