Tidewater Renewables Ltd., a recently formed Alberta corporation, has filed for initial public offering of common shares.
The terms of the offering are to be determined and announced. Tidewater Renewables indicated in its filing that it intends to raise $150 million in gross proceeds.
Tidewater Renewables has applied to list its shares on the Toronto Stock Exchange (TSX) under the symbol “LCFS.”
Tidewater Renewables has entered into an engagement letter with two Canadian chartered banks for a covenant-based, secured, credit facility in the amount of up to $150 million. The credit facility remains subject to completion and is required to be in place at closing.
Tidewater Renewables Ltd. was formed to become a multi-faceted, energy transition company. The company intends to focus on the production of low carbon fuels, including renewable diesel, renewable hydrogen, renewable natural gas, as well as carbon capture.
Tidewater Renewables will acquire certain pre-existing operating assets from Tidewater Midstream and Infrastructure Ltd. (TSX: TWM) for aggregate consideration of approximately $585 million, consisting of $180 million in cash and the issuance of common shares at the offering price.
The acquired assets include existing logistics (loading, unloading and rail assets for feedstock coming in and renewable fuels going out at Prince George Refinery (PGR)), processing activities (existing processing capacity and hydrogen production required for the co-processing projects at PGR), storage (tankage for storage and blending for renewable diesel at PGR and storage reservoirs for renewable natural gas located at Brazeau River Complex (BRC)), and utilities that will facilitate the operation of the renewable fuels growth projects as they come on line.
The assets will provide an initial platform for the renewable diesel, renewable hydrogen, and renewable natural gas business units. The assets will initially operate primarily under long-term take-or-pay contracts exclusively with Tidewater Midstream.
Joel A. MacLeod, Chairman, President & CEO of Tidewater Midstream, will serve as Executive Chairman & CEO of Tidewater Renewables.