Navisun Obtains up to $235m Financing for Expansion
Navisun LLC, a solar independent power producer that collaborates on developing, acquiring, possessing, and operating distributed and small utility-scale solar and storage projects, recently said that it obtained debt financing of up to $235 million through two facilities.
This funding will assist Navisun in executing its growth strategy by enabling the company to progress with its project pipeline and expand its solar energy generation and storage services to more customers. This, in turn, will result in affordable clean energy and reduced electricity costs for offtakers.
The financing includes two facilities. The first is a revolving construction credit facility worth $105 million over five years, which encompasses a letter of credit facility. Moreover, the funding incorporates an accordion feature of up to $50 million, allowing the company the flexibility to increase its funding as its portfolio expands.
MUFG led the financing as the administrative agent, issuing bank, and coordinating lead arranger. Export Development Canada served as the mandated lead arranger, while Wilmington Trust, N.A., acted as the collateral agent and depository.
The second facility is a loan agreement that has a maximum value of $130 million and a term of five years. It comprises a letter of credit facility and a delayed-draw term loan and has an additional feature that allows for an increase in the loan amount of up to $75 million.
MUFG was the leader in organising the financing for the second facility and served as the administrative agent, issuing bank, and coordinating lead arranger. Wells Fargo Bank N.A. and Export Development Canada were designated as mandated lead arrangers, while Wilmington Trust, N.A. acted as the collateral agent and depository.
“As a leading clean energy company, Navisun is committed to advancing the transition to a sustainable and equitable energy future,” said Doug Johnsen, managing partner and co-founder of Navisun.
“The financing facilities we have secured provide us with the necessary capital to continue to innovate and expand our portfolio of solar and storage projects while also continuing to deliver reliable and affordable energy solutions to our customers. We look forward to working with our financing partners as we continue to scale our business,” he added.
As the benefits of clean energy become more apparent to companies and investors, there will be a greater need for financing solutions that enable sustainable energy projects.
This trend is expected to continue as renewable energy becomes increasingly affordable and dependable, making it an appealing substitute for conventional fossil fuels. Navisun is well-positioned to expand its operations and make a substantial contribution to the renewable energy sector, thanks to its robust portfolio of solar projects, commitment to sustainability, and adaptable financing alternatives.
Source: Navisun
