USA, Nevada: Five Ormat Geothermal Power Plants Transferred to Limited Liability Company

Ormat Technologies, Inc. Announces Closing of Partnership Transaction (News Release)

Storm and Drill Rig, by Piyush Bakane, Reno, Nevada. Taken during the Don A Campbell-2 drilling operation, at Ormat's Don A Campbell geothermal project, July 2015 GRC PHOTO CONTEST

Ormat Technologies, Inc. today announced that Ormat Nevada Inc. (Ormat Nevada), and ORPD LLC (ORPD), through OrLeaf LLC, a jointly established new subsidiary, entered into a partnership transaction with a financial investor that will allow us to efficiently monetize the federal tax incentives relating to five geothermal power plants located in eastern Nevada.

The transaction involves the McGinness Hills geothermal power plant complex, and the Tuscarora and Jersey Valley geothermal power plants which, prior to the transaction, were wholly owned by Ormat Nevada, as well as the Don A. Campbell phase 2 geothermal power plant which, prior to the transaction, was part of the ORPD portfolio jointly owned 63.25% by Ormat Nevada and 36.75% by Northleaf Geothermal Holdings LLC, an affiliate of Northleaf Capital Partners.

As part of the transaction, the five geothermal power plants were transferred to a newly established limited liability company, and the investor purchased membership interests in the company for an initial purchase price of $62.1 million and for which it will pay additional installments that are expected to amount to approximately $21 million through 2022. Ormat Nevada's share of the initial cash proceeds is $55.2 million.

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