sPower Closes $498.7 Million Bond Deal

Written By: Jen Neville
October 31, 2018

solar project finance

You May Also Like:
solar financeThe Solar Power Finance & Investment Summit is a leading gathering place for the industry’s leaders. Rated the best solar event in the industry by past attendees, the summit gives senior-level solar and financial executives a place to mingle in an intimate setting that provides for an efficient, in-depth, and focused networking experience.

sPower, a 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. 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,” stated sPower CEO, Ryan Creamer.

Subscribe to get news, insights, podcasts, videos, webinars, and events delivered to your inbox every week 

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,” added 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.


More:

Q&A with Michael Masquelier, CEO of Wireless Advanced Vehicle Electrification (WAVE)
Illinois on Track to Drop Carbon Emissions from Electricity Use by 22 percent by 2030
Upcoming Webinar: Post-Election Report, Impact on the Energy Industry
Upcoming Webinar: Emerging Trends in Power Project Finance
Consumer Spending on Legal Marijuana is Expected to Grow in the U.S.
Q&A with Taylor Trah, Formulation Manager for OutCo.
UPS To Launch First-Of-Its-Kind U.S. Urban Delivery Solution In Seattle

IPP Project Finance tax equity