Chicago-based developer Hecate Energy said it closed a five-year $550 million credit facility package, including a $250 million term loan and $300 million letter of credit to support its solar and energy storage project pipeline.
The credit facilities are expected to be collateralized by the company’s roughly 35 GW pipeline of renewable development projects, along with its minority ownership in Hecate Grid. No additional guarantees or credit supports were provided.
Ten lenders took part in the primary syndication. Proceeds from the term loan refinanced an existing loan facility. The letter of credit is expected to enable Hecate to issue grid interconnection and PPAs leading it to achieve projected sales of 5 GW or more annually.
PEI Global Partners served as Hecate’s financial advisor and Winston & Strawn acted as borrower’s counsel. Investec Inc., and Nomura Securities International led the financing and along with National Bank of Canada, and Deutsche Bank served as initial coordinating lead arrangers and syndication agents. Generate Capital actied as a coordinating lead arranger and documentation agent.