sPower, a renewable energy independent power producer, recently closed a $421.4 million 4(a)(2) private placement financing on a portfolio of approximately 565 MW of utility-scale solar and wind assets.
The financed portfolio represents approximately 44% of sPower’s operating portfolio. sPower, an AES and AIMCo company, owns and operates a portfolio of U.S. solar and wind assets greater than 1.3 GW and has a development pipeline of more than 10 GW.
“This financing will benefit sPower for years to come by locking in predictable cash flows for almost two more decades,” says Ryan Creamer, CEO of sPower.
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 U.S. private placement investors, says sPower.
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.
