New Energy Solar is pleased to announce a 100 percent owned US subsidiary has closed on a US$23 million senior secured Term Loan (Loan) with KeyBank N.A and $1.6 million of associated credit support. New has hedged the underlying LIBOR rate for the full duration of the Loan to fix the interest rate at an average of 4.1 percent, resulting in an improvement in the business’ cost of debt capital. The Loan has a weighted average life of 10 years, maturing in February 2034. The Loan closed on February 15, with an initial funding portion drawn. The remainder will be drawn in accordance with contracted drawdown milestones.
The Loan is secured by NES Orion HoldCo, LLC’s equity interests in a solar portfolio of eight utility-scale assets in North Carolina and Oregon contracted through various long-term power purchase agreements. The proceeds are being used to repay NEW’s US$ corporate revolving credit facility and improve the cost, tenor, and diversity of NEW’s capital structure.
KeyBanc Capital Markets acted as Sole Lead Arranger, Bookrunner, Administrative Agent, Collateral Agent and Depository Bank on the transaction. “This financing marks our third senior secured term loan and further develops NEW’s strong relationship with KeyBanc Capital Markets,” said Liam Thomas, Chief Investment Officer for New Energy Solar. “This transaction, which is reflective of the competitive credit terms available for quality assets, was structured to achieve an improvement in the business’ capital structure which will, in turn, deliver value to investors.” “This transaction highlights the successful relationship between KBCM and New Energy Solar,” said Aaron Klein, Director in KBCM’s Utility, Power & Renewable Energy Group. “We continue to be impressed with New Energy Solar’s leadership team and ability to deploy capital into high-quality solar assets.”