Greenbacker Suspends Share Repurchase Program
Greenbacker Renewable Energy Company LLC, a climate-focused investment manager and independent power producer, announced that on Sept. 23, 2023, their board of directors approved the suspension of the company’s share repurchase program.
In a letter to stockholders announcing the suspension, Greenbacker said it is maintaining, “at this time,” its current distribution policy and investors will continue to receive monthly distributions.
“We believe that this step is in the best interests of the company and our shareholders,” said Charles Wheeler, chief executive officer of Greenbacker, in a letter to stockholders.
According to Wheeler, the suspension of the SRP will allow Greenbacker to devote more operational cash flow and financing dollars into converting pre-operational projects into operational projects and to increase Greenbacker’s pre-operational pipeline, which will allow them to provide visibility to the market as to how they will continue to grow earnings before interest, taxes, depreciation, and amortization (“EBITDA”) into the future.
“We believe that the company will be much better off if, at least during the current period, we are not required to plan for and address periodic and potentially large cash outflows from our business,” continued Wheeler. “We believe we can create substantially more value for our shareholders if cash that would otherwise need to be set aside to fund share repurchases is available to invest in the growth of our projects.”
Greenbacker says all share repurchase requests received for the third quarter of 2023 and beyond—aside from with respect to death, qualifying disability, or a determination of incompetence—will not be honored, paid or deemed valid. Requests will be cancelled with the ability to resubmit at such time, if any, the board reinstates the SRP.
In March 2022, Greenbacker closed its offering of common shares after raising approximately $1.6 billion. The company completed a management internalization later that year when it acquired its external adviser, Greenbacker Capital Management LLC.
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