Consolidated Water Provides Update on Rosarito Project
Consolidated Water Provides Update on Rosarito Project
-Executes Agreement for the Equity Funding of the Project-
GEORGE TOWN, Cayman Islands, March 7, 2018 /PRNewswire/ -- Consolidated Water Co. Ltd. (NASDAQ: CWCO), a leading developer and operator of seawater desalination plants, reported today that on Friday, February 23, 2018, its wholly-owned Mexican subsidiary N.S.C. Agua, S.A. de C.V. ("NSC"), executed a subscription agreement (the "Agreement") for the equity funding required to construct and operate a desalination plant and accompanying pipeline in Rosarito, Baja California, Mexico (the "Project").
The Agreement calls for NSC to retain a minimum of 25% of the equity in Aguas de Rosarito S.A.P.I. de C.V. ("AdR"), the special purpose company formed to own the Project. One or more affiliates of Greenfield SPV VII, S.A.P.I. de C.V. ("Greenfield"), a Mexico company managed by an affiliate of a leading U.S. asset manager, will acquire a minimum of 55% of AdR. The Agreement also provides Suez Medio Ambiente México, S.A. de C.V., ("Suez") a subsidiary of SUEZ International, S.A.S. ("SUEZ"), with the option to purchase 20% of the equity of AdR. If Suez does not exercise this option, NSC will retain 35% of the equity of AdR and Greenfield will acquire 65% of the equity of AdR. The Agreement will become effective when additional conditions related to the Project are met, including but not limited to those conditions previously discussed in CWCO's public filings.
The aggregate funding to be provided for the Project by the AdR shareholders, in the form of equity and subordinated shareholder loans, is presently estimated at approximately 20% of the total cost of Phase 1 of the Project. NSC expects to generate a portion of its funding for AdR through the sale to AdR of the land it has purchased for the Project.
Under the terms of the Agreement, Suez will design and construct the Project, while a joint venture company between NSC and Suez will operate the Project.
"We are delighted that our two partners, SUEZ, a global leader in water treatment, and Greenfield, an affiliate of a leading U.S. asset management firm, have joined us in the Rosarito, Mexico project. This equity partnership agreement marks another major milestone in the development of the Project, which when completed will be one of the largest seawater desalination facilities in the Western Hemisphere. Our focus now shifts to meeting the various conditions precedent for the effectiveness of the APP Contract, which include among other things, completing the negotiation and execution of the debt financing agreements, as well as obtaining all outstanding permits from the federal, state and municipal authorities," said Rick McTaggart, President and CEO.
About Consolidated Water Co. Ltd.
Consolidated Water Co. Ltd. develops and operates seawater desalination plants and water distribution systems in areas of the world where naturally occurring supplies of potable water are scarce. The Company operates water production and/or distribution facilities in the Cayman Islands, Belize, the British Virgin Islands, The Commonwealth of The Bahamas, and Bali, Indonesia. The Company also manufactures and services a wide range of products and provides design, engineering, management, operating and other services applicable to commercial and municipal water production, supply and treatment, and industrial water and wastewater treatment in the United States.
Consolidated Water Co. Ltd. is headquartered in George Town, Grand Cayman, in the Cayman Islands. The Company's ordinary (common) stock is traded on the NASDAQ Global Select Market under the symbol "CWCO". Additional information on the Company is available on its website at http://www.cwco.com.
About SUEZ
With 90 000 people on the five continents, SUEZ is a world leader in smart and sustainable resource management. SUEZ provides water and waste management solutions that enable cities and industries to optimize their resource management and strengthen their environmental and economic performances, in line with regulatory standards. To meet increasing demands to overcome resource quality and scarcity challenges, SUEZ is fully engaged in the resource revolution. With the full potential of digital technologies and innovative solutions, the SUEZ group recovers 17 million tons of waste a year, produces 3.9 million tons of secondary raw materials and 7 TWh of local renewable energy. It also secures water resources, delivering wastewater treatment services to 58 million people and reusing 882 million m3 of wastewater. SUEZ generated total revenues of EUR15.9 billion in 2017.
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "intend", "expect", "should" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, changes in its relationships with the governments of the jurisdictions in which it operates, the outcome of its negotiations with the Cayman government regarding a new retail license agreement, its ability to successfully secure contracts for water projects, including the project under development in Baja California, Mexico, its ability to develop and operate such projects profitably, and its ability to manage growth and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission ("SEC").
By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
For further information, please contact our investor relations firm, AdvisIRy Partners:
Lynn Morgen: (212) 223 4147 lynn.morgen@advisiry.com
Eric Prouty: (212) 750 5800 eric.prouty@advisiry.com
Viktoriia Nakhla: (646) 625-4800 vicky.nakhla@advisiry.com
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SOURCE Consolidated Water Co. Ltd.
