sPower Closes $498.7 Million Bond Deal
September 20 2018 - 12:00PM
Business Wire
sPower, a leading renewable energy Independent Power Producer,
recently closed a $498.7 million, investment grade, private
placement financing. The financed portfolio represents
approximately half of sPower’s 1.3 GW of operating portfolio. This
financing follows sPower’s $421.4 million debt issuance against
approximately 565 MW of utility-scale solar and wind assets in 2017
(a transaction that received Project Finance International’s
“Americas Renewables Deal of the Year” award). These transactions
are among the first ever widely-distributed back-leverage bond
financings on tax equity partnerships. The portfolio is comprised
of four previously financed tax equity partnerships with four
leading financial investors.
“Repeated success always feels great. Our first issuance was an
achievement, but this second deal cements sPower’s ability to
execute consistently and at the highest level in the institutional
debt markets. We are grateful to have financing counterparties and
partners that continue to ‘be there’ to support sPower’s growth,”
said sPower CEO, Ryan Creamer.
The proceeds from this issuance refinanced approximately $425
million of medium-term bank loans, lengthening tenor to a
fully-amortizing 23.5-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 feel great about taking this much interest rate risk off the
table in today’s environment. As the space continues to get more
competitive, the importance of de-risking cash flows to preserve
our margins has never been more important. We are also very pleased
with the level of execution around term and rates,” said sPower
CFO, David Shipley.
Citigroup Global Markets Inc. served as Ratings Advisor,
Structuring Agent, and Lead Placement Agent. CIBC World Markets
Corp, Credit Agricole Securities, KeyBanc Capital Markets Inc.,
Rabo Securities USA Inc., Societe Generale Americas Securities,
LLC, and Wells Fargo Securities, LLC served as Co-Placement Agents.
CohnReznick Capital served as an advisor. Stoel Rives LLP served as
sPower’s counsel in the deal and Skadden served as Note Purchasers’
counsel.
About sPower:
sPower, an AES and AIMCo company, is the largest private owner
of operating solar assets in the United States. sPower owns and
operates a portfolio of solar and wind assets greater than 1.3 GW
and has a development pipeline of more than 10 GW. sPower is owned
by a joint venture partnership between The AES Corporation (NYSE:
AES), a worldwide energy company headquartered in Arlington,
Virginia, and the Alberta Investment Management Corporation, one of
Canada’s largest and most diversified institutional investment fund
managers. For more information, visit www.sPower.com.
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sPowerCamille Press, Communications
Specialist801-679-3542cpress@sPower.com
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