Terra-Gen Executes US $240M Refinancing of Debt Facilities

The corporate debt facilities are composed of a $215 million, 2.5-year senior secured term loan and a $25 million, 2.5-year senior secured working capital facility. The term loan was used to refinance an existing corporate credit facility and to pay transaction fees and expenses. The working capital facility will be used to support the issuance of project and corporate level letters of credit and for other general corporate purposes.

The Terra-Gen Finance portfolio includes ownership interests in 831 megawatts (MW) of renewable generating capacity (breakdown below) across 21 projects located in the western United States.

• Geothermal: 387 MW
• Wind: 364 MW
• Solar: 80 MW

The projects are 100 percent contracted during the term of the facility under power purchase agreements maturing from 2014 to 2038.

Citigroup and BNP Paribas served as joint lead arrangers for the transaction. The corporate facilities were well oversubscribed and the term loan was upsized from $200 million to $215 million one week prior to transaction closing. The term loan carries a coupon of L + 500bps with a 3% LIBOR floor. Upfront fees ranged between 250-300 basis points.