Revolve Acquires 9.6 MW Wind Project in Montana
News related to:Revolve Renewable Power Corp · 2 min read
Revolve Renewable Power Corp. has taken a significant step in expanding its renewable energy portfolio by acquiring the 9.6 megawatt (MW) Horseshoe Bend Wind Project in Montana. The acquisition, valued at $10.48 million, marks the company's first foray into the U.S. power market and is expected to bolster its existing renewable energy assets in Canada and Mexico.
According to the press release, Revolve has signed definitive agreements to acquire 100% of the equity interests in the Horseshoe Bend project. The transaction is expected to be funded through a combination of project-level debt financing provided by Export Development Canada (EDC) and Vancity, along with proceeds from a previously announced bridge credit facility with Whitfield Power Solutions, LLC.
Upon closing, the Horseshoe Bend Wind Project will add 9.6 MW of operating capacity to Revolve's portfolio. The project is currently under a long-term power purchase agreement and is managed by its existing operations and maintenance provider. The vendor is at arm's length from Revolve, and no finder's fees or similar payments were made in connection with the acquisition.
Myke Clark, CEO of Revolve, expressed excitement about the acquisition, stating, "This is a major milestone for Revolve as the Horseshoe Bend project will become our first operating project in the United States. The project has an established operating history and is expected to bring immediate, contracted revenue from day one following the closing."
Vancity, another financing partner, added, "We are pleased to continue our partnership with Revolve through the financing of Horseshoe Bend. This transaction builds on our previous work together and reflects our confidence in Revolve's ability to develop and operate high-quality renewable energy assets."
The Horseshoe Bend project is expected to complement Revolve's existing wind, solar, hydro, and storage assets under long-term power purchase and services agreements across Canada and Mexico. The acquisition aligns with Revolve's strategy of acquiring de-risked, revenue-generating assets alongside its greenfield development pipeline.
In connection with the acquisition, Revolve has entered into project-level loan agreements with EDC and Vancity, providing for aggregate debt financing of $7.25 million. The loans have a term of 10 years, including an interest-only period for the first 12 months, and bear an all-in interest rate currently estimated at approximately 10%, based on USD Prime plus an applicable margin.
Revolve's portfolio includes 27 MW of operating assets under long-term power purchase agreements across Canada and Mexico, covering wind, solar, battery storage, and hydro generation. The company also has a diverse portfolio of utility-scale development projects across the U.S., Canada, and Mexico, with a combined capacity of over 3,000 MW, as well as a 140 MW+ distributed generation portfolio under development.
The acquisition is expected to provide Revolve with an established base of contracted revenue, enhancing its financial stability and growth prospects in the U.S. power market. The company's continued strategy of acquiring de-risked, revenue-generating assets alongside its greenfield development pipeline is aimed at further expanding its renewable energy footprint in North America.