Date: February 11, 2010
Source: Tortoise Capital Resources Corporation
Landfill Energy Systems acquires Timberline Energy from Mowood and Tortoise Capital Resources
Mowood, LLC, a portfolio company of Tortoise Capital Resources Corporation ( TTO), has sold its wholly-owned subsidiary Timberline Energy, LLC to Landfill Energy Systems, LLC (LES), a company engaged in the development, construction, operation and maintenance of landfill gas to energy systems. All the entities are based in the US.
Timberline Energy is engaged in the processing and transport of natural gas. Mowood is a holding company operating in the processing, distribution and transportation of natural gas, while TTO is the private equity arm of Tortoise Capital Advisors, LLC.
Pursuant to the sale, TTO expects to receive a distribution of proceeds totaling approximately $9 million and additional proceeds up to $2.4 million over the next two years based on contingent and escrow terms.
Earlier Announcement (December 31, 2009):
Mowood has entered into a definitive agreement to sell Timberline Energy to LES
Pursuant to the terms of the agreement, Mowood will transfer Timberline Energy's operating and development projects to LES. Interest in one development project is expected to be transferred to Timberline management. After paying off its indebtedness, paying management incentives and reserving for continued liabilities, Mowood is expected to distribute substantially all of the remaining proceeds to TTO.
At close TTO is expected to receive proceeds of between $9 and $9.3 million depending on closing adjustments. Over the next two years TTO could receive additional proceeds of up to $3.7 million based on the contingent and escrow terms contained in the agreement.
Deal Value (US$ Million): 11.4
Deal Type: Acquisition
Sub-Category: Majority Acquisition
Deal Status: Completed: 2010-02-09
Deal Participants
Target (Company): Timberline Energy, LLC
Acquirer (Company): Landfill Energy Systems
Vendor (Company): Mowood, LLC
Deal Rationale
Tortoise Capital Resources intends to use the proceeds of the transaction to payoff its $4.6 million of bank debt leaving the remainder available to invest according to stated investment policies.
For full details on Tortoise Capital Resources Corporation (TTO) TTO. Tortoise Capital Resources Corporation (TTO) has Short Term PowerRatings at TradingMarkets. Details on Tortoise Capital Resources Corporation (TTO).
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