The acquisition would give Revolve its first operating U.S. power project, with US$7.25 million of project-level debt financing secured from EDC and Vancity.
Key Investor Takeaways
- Revolve Renewable Power (USOTC:REVVF) agreed to acquire 100% of the 9.6 MW Horseshoe Bend Wind Project in Montana for US$10.48 million.
- The Horseshoe Bend Wind Project would become Revolve’s first operating power generation asset in the United States and add capacity backed by a long-term power purchase agreement.
- EDC and Vancity are providing US$7.25 million of project-level debt financing, covering about 69% of the acquisition price.
- The 10-year loans currently carry an estimated all-in interest rate of approximately 10%, with an interest-only period during the first 12 months.
- Closing would expand Revolve’s operating portfolio beyond its existing assets in Canada and Mexico while increasing its contracted, cash-generating capacity.
Why REVVF Stock Is in Focus
Revolve has signed definitive agreements to acquire the Horseshoe Bend Wind Project for US$10.48 million, marking a planned entry into operating renewable power generation in the U.S.
The 9.6 MW Montana wind project has an established operating history and sells electricity under a long-term power purchase agreement. Its existing operations and maintenance provider is expected to remain in place following the transaction.
To finance the deal, Revolve entered into project-level loan agreements with Export Development Canada and Vancity Capital Corporation for a combined US$7.25 million. Each lender will provide a US$3.625 million term loan, with funding expected when the acquisition closes.
The loans have 10-year terms and an initial 12-month interest-only period. Revolve said the all-in interest rate is currently estimated at approximately 10%, based on USD Prime plus an applicable margin, with no early repayment penalty.
The balance of the purchase price is expected to be funded from cash on hand, including proceeds from Revolve’s previously announced bridge credit facility with Whitfield Power Solutions.
Why This Matters for Investors
The acquisition would shift part of Revolve’s growth toward an already operating, contracted asset rather than relying solely on greenfield development.
Revolve currently reports 27 MW net of operating assets under long-term power purchase agreements in Canada and Mexico. Adding Horseshoe Bend would increase its operating base by 9.6 MW while establishing its first operating presence in the U.S. power market.
The long-term power purchase agreement may provide greater revenue visibility than an asset still progressing through development. At the same time, the financing structure introduces a meaningful debt commitment, making the project’s cash generation relative to financing costs an important consideration.
The transaction also illustrates Revolve’s stated strategy of combining acquisitions of operating, revenue-generating assets with its broader development pipeline, which includes more than 3,000 MW of utility-scale projects and over 140 MW of distributed generation projects under development.
What to Watch Next
The immediate catalyst is completion of the Horseshoe Bend acquisition and funding of the US$7.25 million project finance facility.
Investors can also watch for subsequent disclosure on the project’s revenue contribution, operating performance and how the approximately 10% financing cost affects its economics. Further operating-asset acquisitions would provide additional evidence of how Revolve intends to expand this part of its North American renewable energy portfolio.