Mowood Closes Sale of Timberline Energy.
Tortoise Capital Resources Corp. today announced that its portfolio company, Mowood, LLC, has closed the sale of its wholly owned subsidiary Timberline Energy, LLC to Landfill Energy Systems, LLC.
Timberline is an owner and developer of projects that convert landfill gas to energy.
Following the transaction, Mowood will continue its ownership and operation of Omega Pipeline Company, LLC, a local distribution company serving the natural gas and propane needs of Fort Leonard Wood and other customers in south central Missouri.
TTO intends to use a portion of the proceeds to pay off its $3.8 million credit facility, and intends to invest the remainder of the proceeds according to stated investment policies, which may include a potential investment in Omega to facilitate growth.
TTO expects the immediate impact of the transaction to be neutral to its distributable cash flow.
"The Timberline sale has provided what we believe to be a strong return to our stockholders, and has allowed us to eliminate our credit facility. The sale also gives us the opportunity to help support the growth of Omega and provides capital for new investments," said TTO President Ed Russell. "We expect to receive a distribution of proceeds totaling approximately $9.0 million, subject to customary closing adjustments. Over the next two years, we could receive additional proceeds of up to $2.4 million, based on contingent and escrow terms. These additional proceeds were reduced by $1.3 million from our original projections based on a determination that one of the contingent terms will not be realized."
For more information, visit www.tortoiseadvisors.com.
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|Date:||Feb 10, 2010|
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