sPower, a renewable energy Independent Power Producer, recently closed a $421.4 million private placement financing on a portfolio of approximately 565 MW of utility-scale wind and solar assets. The financed portfolio represents approximately 44% of sPower’s 1.3 GW operating portfolio. In December 2017, the transaction was awarded 2017 “Deal of the Year” by Project Finance International for its Americas renewable energy category.
The financed portfolio represents approximately 44% of sPower’s 1.3 GW operating portfolio.
“We are obviously thrilled with the recognition of ‘Deal of the Year.’ This was our inaugural institutional bond market transaction and was very complex given the nine underlying tax equity partnerships. We are very pleased with the outcome and our ability to access long-term, fixed-rate debt at attractive levels,” said sPower CEO Ryan Creamer. “This first-of-its-kind milestone is a testament to the quality of our operating portfolio, the relationships we have with our finance partners and the strength of our utility offtakers. This financing will benefit sPower for years to come by locking in predictable cash flows for almost two more decades.”
The proceeds from this issuance refinanced approximately $300 million of medium-term bank loans, lengthening tenor to a fully-amortizing 19-year facility and eliminating the refinancing risk associated with previous bank loans. Incremental proceeds net of the bank loan refinancing will be used to fund sPower’s continued development of additional renewable generating facilities. The offering was significantly oversubscribed by a diverse group of leading US private placement investors.
“We are obviously thrilled with the recognition of ‘Deal of the Year’” said sPower CFO David Shipley. “This was our inaugural institutional bond market transaction and was very complex given the nine underlying tax equity partnerships. We are very pleased with the outcome and our ability to access long-term, fixed-rate debt at attractive levels,”
Citi served as Ratings Advisor, Structuring Agent, and Lead Placement Agent. Credit Agricole, KeyBanc, Rabo, Societe Generale and Wells Fargo served as Co-Placement Agents. CohnReznick served as financial advisor.
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