NWF - NZ Windfarms

**nztx** · 27-10-2023, 12:15 AM

http://nzx-prod-s7fsd7f98s.s3-websit...505/405783.pdf

The new wind farm is expected to cost in the order of $500-600m and will be funded by a mix
of equity and limited-recourse project debt. Subject to NWF arranging financial commitments,
the equity will be funded 50:50 by NWF (or a funding entity controlled by NWF) and Meridian.
If NWF is unable to fully fund its planned 50% share its interest in the joint venture will reduce.

So we see a 50/50, then this - if no dough for NWF's share, it's interest in project reduces

MEL is buying into NWF 15% .. but likely to change on underwriting - looking like MEL get to control the
JV job directly & indirectly - many thanks to the fare paying NWF holders

And MEL has 15 years Offtake .. probably a good thing.

Potentially NWF may come knocking further down the track looking for more equity from it's holders
still onboard..

MEL presumably wont be far away watching / waiting or underwriting the job .. like now

The white knight may get to run away with the silver platter, if the long suffering boys and girls
sitting as minority holders lose interest..

Potentially a MEL take out over time.

Sort of deals with finding a new home for a problem child, where the futureproof bills are
seen as high, existing pre-plan prospects were constrained, and contributors for those who stayed
from start wear scorch marks, many with reluctance to throwing more pennies in the pot

Too early yet for the bods at NWF to be looking for new jobs ?

The scenario unfolding looks very similar to the trajectory of NZO & it's minority stakeholders

**Grimy** · 27-10-2023, 08:34 AM

Having been in since day one - but luckily with accumulation at sub 10 cents at times and then selling the majority of my holdings in the 20-25 cent range, I decided to exit completely yesterday on the news.
As NZTX has said, long time-lines, a lot of money required, rights issues and just general uncertainty as to how this will go is enough for me to watch from the sidelines, sitting on a small profit.

**flyinglizard** · 27-10-2023, 04:26 PM

I guess that they have no intention to sell the whole company. enjoy doing nothing with high salary plus huge consulting fee. However, you have to admit their PR networking and get big fish onboard. I am waiting the coalition government climate change policy announcement.

**Dassets** · 28-10-2023, 03:20 PM

This is a great deal for both NWF and MEL. It is also not a surprising deal. It reflects structural changes that are very long term, massive in proportion to the sector. Firstly this deal has very low risk(for botrh parties) and risk management is critical. For me the 9% IRR post tax is great and reflects the asset that NWF actually had. This view is also supported in the transfer value of the asset into the jv.

When you peal back the deal you see more value for shareholders. Implicit in the numbers is a big development pipeline. I guess they are going to spend between $20-30m on this the next 2 to 3 years. The equity they need to kick in for the jv build is so easy to raise at the deal metrics I wouldn't lose any sleep.

I don't hold any equity but there is a simple reason for that which will explain why. It is in fast-track also. Any guesses?

**shareman** · 29-10-2023, 05:31 AM

"I don't hold any equity but there is a simple reason for that which will explain why. It is in fast-track also. Any guesses?"

You're applying for consent for another wind farm?

I feel this is a good deal for NWF also, end of the day if you're going to do the repower, you need serious money (which if it doesnt come from shareholders has to come from somewhere) and the repower needs to be done to realise the full potential of the site.

So, end of the day, this is a good outcome for NWF holders