Ormat Announces $175 Mln Deal With Northleaf Capital Partners - Quick Facts

(RTTNews) - Ormat Technologies Inc.'s (ORA) subsidiary, Ormat Nevada Inc., has inked a binding agreement with infrastructure funds managed by Northleaf Capital Partners, under which Ormat will contribute certain geothermal and recovered energy generation power plants into a newly established holding company subsidiary or "JV", and Northleaf will acquire an approximately 40% equity interest in the JV. The Company will raise approximately $175 million from the transaction.

The power plants that will be contributed to the JV as part of the transaction include Ormat's Puna geothermal power plant in Hawaii, the Don A. Campbell geothermal power plant in Nevada, and nine power plant units across three recovered energy generation assets known as OREG 1, OREG 2, and OREG 3. Ormat will continue to consolidate the JV and its assets, and will continue to provide day-to-day management control, operations and maintenance control over the projects.

The transaction may close in the first quarter of 2015.